Question 1

According to the illustrations describing the product life cycle, during which stage of the cycle is there a strong likelihood that negative profits will be the norm?

Accepted Answer

During the introduction stage of the product life cycle, negative profits are common because of the high costs associated with product development, marketing, and distribution setup, with sales volume typically being low.

Question 2

You are somewhat shocked to learn that your product's profit curve is in the negative. Which of the following stages of the product life cycle is your product most likely in given its position on its profit curve?

Accepted Answer

During the introduction stage, it's common for products to have negative profits due to high initial costs for development, marketing, and distribution, with sales volume still growing.

Question 3

The Trivial Pursuit board game debuted at the International Toy Fair in 1982 and quickly caught on as a fad. How has Parker Brothers managed to extend this fad's life span?

Accepted Answer

Parker Brothers has extended the life span of Trivial Pursuit by constantly creating new products and offshoots, such as themed editions and electronic versions, to keep the game fresh and appealing to new audiences.

Question 4

Which of the following product life-cycle stages would be appropriately described as being one where firms focus mainly on buyers from higher-income groups and prices tend to be high because costs are high?

Accepted Answer

In the introduction stage of a product life cycle, products are often targeted at higher-income groups, and prices are set high due to the high costs associated with product development and initial marketing efforts. This strategy helps recover the initial investment and tests the market's acceptance of the new product.

Question 5

To say that a product has a life cycle is to assert four things. Which of the following assertions impacts marketing, financial, manufacturing, purchasing, and human resource responsibilities in a company?

Accepted Answer

The answer of To say that a product has a...

Question 6

________ do not survive (as a special category product life cycle) because they do not normally satisfy a strong need.

Accepted Answer

Fads are short-lived and do not fulfill a strong need, making them unsustainable in the long run.

Question 7

The PLC concept can be used to analyze a product category, a product, a brand, or a

Accepted Answer

The Product Life Cycle (PLC) concept can be applied to a product form, which refers to different versions or variations of a product within a category.

Question 8

While looking at a series of special-case product life cycles, you observe that one of the life cycles has had a rapid growth in sales resulting in a severe peak of the sales curve followed by a rapid decline. Which of the following product life-cycle curves is most likely represented by the above illustration?

Accepted Answer

A severe peak of the sales curve followed by a rapid decline is indicative of a fad life cycle. This is a short-lived product trend where sales rapidly increase but then quickly decline. The other life cycles mentioned (style, niche, techno, and fashion) typically have more gradual sales patterns with longer periods of growth and stability before decline.

Question 9

A product such as nylon (e.g., numerous uses parachutes, hosiery, shirts, carpeting, et cetera) has been characterized as having a ________ pattern to its product lifecycle.

Accepted Answer

Nylon has a scalloped pattern to its product lifecycle because each new use (parachutes, hosiery, shirts, carpeting, etc.) adds a new growth phase, creating multiple overlapping curves that resemble the edge of a scallop shell.

Question 10

Golder and Tellis distinguish between three types of new product pioneers. Which type is the first to develop patents in a new-product category?

Accepted Answer

The type of new product pioneer that is the first to develop patents in a new-product category is the inventor. Golder and Tellis also distinguish between two other types of pioneers: market pioneers, who are the first to introduce a new product to the market, and product pioneers, who are the first to introduce a new product category. However, neither of these types specifically involves developing patents. The nonsurviving pioneer is a category that encompasses pioneers who ultimately fail in the market, regardless of the specific actions they take. Innovator is not one of the three types of pioneers distinguished by Golder and Tellis.

Question 11

Most studies indicate, with respect to the product lifecycle in its introductory stage, that the ________ gains the most advantage.

Accepted Answer

The market pioneer gains the most advantage in the introductory stage of the product lifecycle because it is the first to enter the market with its product or service, giving it a significant competitive edge over its competitors. The pioneers can establish brand recognition, define the market, and benefit from a lack of competition in the early stages. The other options are either too small or too late to gain a significant benefit in the introductory stage.

Question 12

The maturity stage of the product life cycle is characterized by

Accepted Answer

During the maturity stage, sales growth slows down as the product has already been accepted by most potential buyers, and the market becomes saturated.

Question 13

Today, most products are in the ________ of the life cycle, and most marketing managers must cope with the problems and challenges of this stage.

Accepted Answer

The majority of products are in the maturity stage of the product life cycle, where sales growth slows and competition becomes more intense. Marketing managers must address challenges such as maximizing profits, maintaining market share, differentiating from competitors, and finding new market segments to target. The other stages mentioned are less common for most products, with the introduction stage being reserved for new products and the growth stage being a period of rapid sales growth. The decline stage is characterized by a decrease in sales, and the pre-pioneering stage refers to a product concept that does not yet exist in the market.

Question 14

Which of the following product lifecycle stages is characterized as being one where a rapid climb in sales occurs, new product features are introduced by new competitors, and distribution is expanded?

Accepted Answer

The growth stage is characterized by a rapid climb in sales, the introduction of new product features by new competitors, and an expansion in distribution as the product gains popularity. During this stage, the product reaches a wider audience and becomes more profitable. In contrast, the introduction stage is characterized by low sales, limited distribution, and high marketing and development costs. The pre-pioneering and saturation stages are not commonly recognized as official product lifecycle stages. The maturity stage is characterized by a slowdown in sales growth and increased competition, which may lead to price wars and decreased profitability.

Question 15

According to the general bell-shaped curve used to illustrate the product life cycle, which of the following stages is generally seen when the sales curve is at its peak?

Accepted Answer

The maturity stage of the product life cycle is generally represented by the peak of the sales curve, indicating the highest level of sales before the product begins to decline in popularity and sales.

Question 16

The ________ stage of the product is characterized as being one where there is period of rapid market acceptance and substantial profit improvement.

Accepted Answer

The growth stage is characterized by a period of rapid market acceptance and substantial profit improvement. This is when the product establishes itself in the market and experiences increasing demand from customers. While there is still room for profit improvement, the growth stage typically marks the beginning of peak sales for the product.

Question 17

When Mel chose his new home, he picked a Cape Cod design. Which of the following special categories of product life cycles would be most associated with the description of Mel's home?

Accepted Answer

The Cape Cod design is a specific style of architecture and therefore most closely associated with the style special category of product life cycles. Styles tend to have longer life cycles than fads or fashion trends and are often influenced by cultural or historical factors.

Question 18

All of the following strategies have been suggested as proper for sustaining rapid market growth during the growth stage of the product life cycle. Which of these strategies can also involve improved product styling?

Accepted Answer

Improving product quality and adding new product features can involve product styling as a way to differentiate the product from competitors and appeal to customers' preferences. For example, a clothing company may introduce new styles and designs to keep up with changing fashion trends and attract consumers who value stylish products.

Question 19

The pioneer advantage does not always ensure success in the marketplace. Which of the following is a reason for a market pioneer to be overtaken by later entrants?

Accepted Answer

A market pioneer can be overtaken by later entrants if it is improperly positioned, as this can lead to a failure to meet consumer needs effectively, allowing competitors to capture market share with better positioning.

Question 20

Which of the following common product life-cycle patterns would be characterized as being one where sales grow rapidly when the product is first introduced and then fall to a "petrified" level that is sustained by late adopters buying the product for the first time and early adopters replacing the product?

Accepted Answer

The growth-slump-maturity pattern describes a product life cycle where sales initially surge, then decline, and finally stabilize at a sustained level. This pattern fits the description of rapid initial growth followed by a reduction to a stable level of sales maintained by new and replacing customers.

Quiz 10: Crafting the Brand Position