Question 1

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 2

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 as sales growth slows down and competition intensifies. It requires marketing efforts to maintain market share and differentiate the product in order to extend the product life cycle.

Question 3

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 promoting its product to counteract competitive responses, which is a typical characteristic of the growth stage of the product life cycle. The introduction stage is characterized by a slow increase in sales, while the maturity stage is marked by stable sales, and the decline stage is marked by a decline in sales. Adoption is not a stage in the product life cycle.

Question 4

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 When sales of a product drop during...

Question 5

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 of the PLC, profits start to increase as promotion costs get spread over a larger volume, and new market segments get entered. This is because the product gains acceptance, and customer demand increases.

Question 6

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

P&G's management decided to sell off or discontinue the lesser or declining brands, indicating that they chose to drop the products.

Question 7

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 company is experiencing dropping sales, which indicates that the product is in the decline stage of the PLC. By selling the soap to restaurants and hotels, the company is attempting to salvage what is left of the product's life cycle.

Question 8

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

According to marketing theory, most products are in the maturity stage of the product life cycle. During this stage, sales growth tends to slow down, and the market becomes saturated with competitors. However, the product still has a loyal customer base, and the company may focus on promotional activities to maintain and defend its market share.

Question 9

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

The introduction of new packaging and colors is a modification made to the product itself in order to appeal to consumers.

Question 10

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 11

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

Products in the maturity stage of the PLC may seem unchanged, but successful ones evolve to meet changing consumer needs through improvements in quality, features, or marketing strategies.

Question 12

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 is primarily useful in understanding the different stages a product goes through and the marketing strategies that are appropriate at each stage. However, developing marketing strategy based solely on the PLC concept can be problematic because marketing strategy is not simply a response to a product's position in the life cycle, but also a factor that influences the product's trajectory through the cycle. Therefore, PLC is just one of the many factors that should be considered in developing a comprehensive marketing strategy.

Question 13

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

When a product is in the maturity stage, the company should consider modifying the product, market, or marketing mix to keep the product competitive and prolong its life cycle. Harvesting the product or market, divesting the product line, liquidating the firm's assets, or dropping the product from its market offerings are all options for declining products in the decline stage.

Question 14

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 of the PLC leads to greater competition because there are more producers than customers, which creates intense competition to capture market share. This can result in lower prices and increased marketing efforts to differentiate products from competitors.

Question 15

Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

Accepted Answer

This statement is false. The majority of products go through an introduction stage before moving on to the growth stage. During the introduction stage, there is typically slow sales growth as awareness of the product increases and it gains acceptance in the marketplace.

Question 16

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

The answer of When Kraft focused on cost cutting with...

Question 17

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

Crayola crayons have been around for over a century and are widely recognized and used. With their expansion to over 80 countries, it is safe to say that they have reached the maturity stage of the PLC, where sales growth has stabilized and the product has established a regular customer base. The introduction stage is characterized by low sales and product awareness, the growth stage by increasing sales and competition, and the decline stage by decreasing sales and eventual discontinuation of the product. The laggard and incubation stages are not typically recognized within the PLC model.

Question 18

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 in the market.

Question 19

Profits drop during the growth stage of the PLC because per customer promotion costs are high.

Accepted Answer

Profits actually increase during the growth stage of the PLC as sales volumes and prices increase. Per customer promotion costs may also increase, but this does not necessarily translate to a drop in profits.

Question 20

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 company that establishes or is the first to enter a new market. As such, it is essential for a market pioneer to choose a strategy consistent with the intended product positioning to gain market leadership, since the first mover advantage can be a significant factor in determining the long-term market share of a product or service. The other options listed are not necessarily focused on strategy or product positioning.

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

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

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.

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?

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.

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.

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

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 ________.

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?

Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.

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.

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

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

Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

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.

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.

Profits drop during the growth stage of the PLC because per customer promotion costs are high.

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