Question 1

Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants and hotels to extend their product's life. The soap manufacturer is in the ________ stage of PLC.
A) introduction
B) growth
C) maturity
D) decline
E) development

Accepted Answer

The fact that the company is resorting to selling their product to different channels in order to extend their product’s life suggests that this is most likely the decline stage of the product life cycle.

Question 2

When a product is in the maturity stage, the company should most likely consider ________.
A) harvesting the product or market
B) modifying the product, market, or marketing mix
C) divesting the product line
D) liquidating the firm's assets
E) dropping the product from its market offerings

Accepted Answer

In the maturity stage, sales growth slows down and the product reaches saturation in the market. To maintain and maximize profits, the company can make modifications to the product, target new markets, or change marketing strategies. Harvesting, divesting, and liquidating should only be considered if the product is no longer profitable or if the company wants to focus on other products. Dropping the product entirely should only be considered if it is no longer relevant and has no potential for sales.

Question 3

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life cycle.

Accepted Answer

The PLC (Product Life Cycle) concept considers the various stages a product goes through in its lifespan (introduction, growth, maturity, decline) and suggests different marketing strategies for each stage. However, as the scenario suggests, the marketing strategy can also impact the product's lifespan and progression through the stages, creating a feedback loop between cause and result. This can make using the PLC concept to develop marketing strategy problematic.

Question 4

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

Accepted Answer

The statement is false. Not all successful products are immediately accepted and move quickly to the growth stage of the PLC. Some products may take time to gain acceptance and may go through a period of slow growth before reaching the growth stage.

Question 5

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-When sales of a product drop during the decline stage of the PLC, a company typically modifies the marketing mix, the product, or the market.

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 6

When Kraft focused on cost cutting with its older, established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.
A) extend
B) modify
C) drop
D) harvest
E) analyze

Accepted Answer

Harvesting a product involves reducing investment in it, aiming to maximize short-term profits and cash flow, which aligns with Kraft's strategy of cost-cutting for older brands without much investment or modification.

Question 7

Most products in the marketplace are in the ________ stage of the product life cycle.
A) growth
B) decline
C) maturity
D) introduction
E) development

Accepted Answer

Most products in the marketplace have already gone through the introduction and development stages, so they are likely in the maturity stage, where sales are still steady but not growing at a significant rate. Growth implies a rapid increase in sales, which is less common for established products. Decline is a stage where sales are decreasing, which is also less common for most products in the marketplace.

Question 8

P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover Girl cosmetics. In these examples, management decided to ________ the products.
A) modify
B) maintain
C) drop
D) harvest
E) franchise

Accepted Answer

The word "sold off" implies that P&G decided to drop these brands, meaning they are no longer maintaining or harvesting them, nor are they modifying them or franchising them.

Question 9

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Profits drop during the growth stage of the PLC because per customer promotion costs are high.

Accepted Answer

During the growth stage of the Product Life Cycle (PLC), profits typically increase as sales grow rapidly and economies of scale are achieved, reducing the per-unit cost of production and marketing.

Question 10

A(n) ________ chooses a strategy consistent with the intended product positioning. To gain market leadership requires correct decisions from the beginning.
A) brand evangelist
B) market pioneer
C) early adopter
D) laggard
E) harvester

Accepted Answer

A market pioneer is the first company to enter a new market with a new product or service, and they must choose a strategy that is consistent with their intended product positioning. Making correct decisions from the beginning is crucial for gaining market leadership. A brand evangelist is a customer who passionately advocates for a brand, an early adopter is a customer who is quick to adopt new products, a laggard is a customer who is slow to adopt new products, and a harvester is a company that aims to maximize profits in the short term by reducing costs and exploiting existing products.

Question 11

At which stage in the PLC do profits increase as promotion costs are spread over a large volume, and as the firm enters new market segments?
A) maturity
B) introduction
C) decline
D) growth
E) harvest

Accepted Answer

During the growth stage in the PLC, profits increase as promotion costs are spread over a large volume, and as the firm enters new market segments. This is because the product gains in popularity and demand increases, allowing the firm to capture a larger market share and generate higher profits.

Question 12

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Evelyn's vacuum is at the ________ stage of the product life cycle.
A) product development
B) introduction
C) growth
D) decline
E) maturity

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 13

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?
A) growth
B) decline
C) maturity
D) introduction
E) adoption

Accepted Answer

The maturity stage in the PLC normally lasts longest and poses strong challenges to marketing managers. During this stage, sales growth slows down, and competition becomes intense. The challenge for marketing managers is to maintain market share and maximize profits while facing competition from established and new brands. They need to focus on extending the product life cycle through product improvements, finding new uses and applications, and creating new target markets.

Question 14

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?
A) growth
B) decline
C) maturity
D) product development
E) adoption

Accepted Answer

The answer of Which of the following stages of the...

Question 15

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.
A) market
B) pricing strategy
C) distribution
D) product
E) competition

Accepted Answer

When Heinz introduced new packaging and colors, they were modifying the features of their product to make it more appealing to consumers.

Question 16

Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a character from an animated television series originally broadcast in the '50s and '60s. The company's version of Sandy the Flying Squirrel, a character from the show targeted to baby boomers, was a strong success. Since the firm is a market pioneer, it needs to make the new launch strategy for Bubble the Moose consistent with the intended ________.
A) pricing
B) product positioning
C) brand extension
D) prototype
E) fad

Accepted Answer

Since Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a character from an animated television series originally broadcast in the '50s and '60s, the company needs to make the new launch strategy for Bubble the Moose consistent with the intended product positioning.

Question 17

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to counteract competitive responses. Kellogg's is in the ________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption

Accepted Answer

Kellogg's is increasing its promotion expenditure to counteract competitive responses, suggesting that the product is in the growth stage of the product life cycle. In the growth stage, a product's sales and profits are increasing as it gains wider acceptance in the market. This is typically accompanied by increased marketing efforts to build brand awareness and fend off competition.

Question 18

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.
A) introduction
B) laggard
C) maturity
D) decline
E) incubation

Accepted Answer

The maturity stage is characterized by a stable demand for the product, a high level of brand loyalty, and intense competition. With Crayola crayons being sold in over 80 countries around the world, it is safe to assume that they have already passed the introduction stage and are well-established in the market. Since there is still a steady demand for the product and consistent competition, it is unlikely that they have entered the decline stage. Therefore, Crayola crayons are likely in the maturity stage of the product life cycle.

Question 19

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.

Accepted Answer

The last statement in the scenario implies that successful products evolve to meet changing consumer needs, indicating that the statement "Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs" is true.

Question 20

Which of the following would lead to greater competition in the maturity stage of the PLC?
A) overcapacity
B) market pioneers
C) poor management
D) inadequate promotion
E) diminishing budgets

Accepted Answer

Overcapacity in the maturity stage can lead to greater competition as companies struggle to differentiate themselves and capture market share. This can result in price competition and increased promotional efforts to maintain market position. Market pioneers (B) are typically present in the introduction stage, not the maturity stage. Poor management (C), inadequate promotion (D), and diminishing budgets (E) may all contribute to a decline in sales and market share, but they do not necessarily lead to greater competition.

Quiz 9: Developing New Products and Managing the Product Life Cycle

Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants and hotels to extend their product's life. The soap manufacturer is in the ________ stage of PLC.

When a product is in the maturity stage, the company should most likely consider ________.

When Kraft focused on cost cutting with its older, established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.

Most products in the marketplace are in the ________ stage of the product life cycle.

P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover Girl cosmetics. In these examples, management decided to ________ the products.

A(n) ________ chooses a strategy consistent with the intended product positioning. To gain market leadership requires correct decisions from the beginning.

At which stage in the PLC do profits increase as promotion costs are spread over a large volume, and as the firm enters new market segments?

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

Which of the following would lead to greater competition in the maturity stage of the PLC?