Question 1

Sales of ABC Corporation's digital video cameras are rising rapidly,profits are peaking,and competitors are entering the market.ABC is able to maintain its market lead.Judging from this example,the digital video camera is in which stage of the product life-cycle?
A) Introduction
B) Decline
C) Maturity
D) Growth
E) Evaluation

Accepted Answer

The rising sales and peaking profits indicate that the digital video camera is in the growth stage of the product life-cycle. The entry of competitors also suggests that the market is growing rapidly. Despite the competition, ABC Corporation is able to maintain its market lead, indicating that the product is still in its growth phase.

Question 2

Sheet steel to be used in making automobile fenders is an example of
A) raw materials.
B) supplies.
C) component parts.
D) accessory equipment.
E) process materials.

Accepted Answer

The answer of Sheet steel to be used in making...

Question 3

If Mason,a poultry producer,decided to start producing veggie burgers,this would be an example of
A) developing an entirely new product line.
B) expanding the depth of the marketing mix.
C) extending an existing product line.
D) an aesthetic product modification.
E) narrowing the marketing mix.

Accepted Answer

Mason producing veggie burgers represents developing an entirely new product line, as it is a shift from poultry to plant-based products.

Question 4

When a product experiences sales revenue and profit increases,reaches a peak,and then declines,it goes through what is called
A) cyclical phases.
B) roller coaster revenue.
C) product stages.
D) product growth and decline.
E) product life-cycle.

Accepted Answer

The mentioned process of sales revenue and profit increasing, reaching a peak, and declining is a classic example of a product's life cycle. The stages in a product's life cycle include introduction, growth, maturity, and decline, which corresponds to the sales and profit phases mentioned. Therefore, option E, product life-cycle, is the correct answer.

Question 5

The product life-cycle stage in which there is a rapid sales increase,other firms have begun to market competing products,and lower unit costs and an overall tendency toward increased profit prevail is called
A) growth.
B) extension.
C) introduction.
D) decline.
E) maturity.

Accepted Answer

During the growth stage of the product life cycle, sales increase rapidly, and there is growing competition from other firms marketing similar products. However, the company may achieve lower unit costs due to economies of scale, which can lead to higher profits.

Question 6

Koolers Incorporated feels that at its current stage-growth-it needs to meet its competition.It can best do this by all of the following means except
A) initiating product improvements.
B) expanding the product line to appeal to specialized market segments.
C) lowering prices.
D) emphasizing customer service and prompt credit for defective products.
E) eliminating less profitable versions of the product.

Accepted Answer

The answer of Koolers Incorporated feels that at its current...

Question 7

Razor Company's blades are in the maturity stage of the product life-cycle.How can the company strengthen its market share?
A) Eliminate less profitable versions of the product
B) Redesign the packaging
C) Make no style changes
D) Emphasize customer service
E) Watch for the early buying patterns

Accepted Answer

The answer of Razor Company's blades are in the maturity...

Question 8

Paper,pencils,oils,and ____ are examples of supplies.
A) stamping machines
B) cleaning agents
C) cranes
D) calculators
E) lathes

Accepted Answer

The other options do not fit the category of supplies for drawing or painting, which is what paper, pencils, and oils are commonly used for. Cleaning agents, on the other hand, could be used to clean up after a drawing or painting session or to clean the supplies themselves.

Question 9

Arm & Hammer launches a campaign to extend the life of its baking soda products through improved packaging and new uses in products such as toothpaste and cat litter.These new uses of products and other modifications are generally created during the ____ phase of the product life-cycle.
A) growth
B) introduction
C) maturity
D) extension
E) decline

Accepted Answer

The answer of Arm & Hammer launches a campaign to...

Question 10

A product usually declines because of technological advances or environmental factors or because
A) the item is very popular.
B) the price is too low.
C) consumers have switched to competing brands.
D) the price is too high.
E) no ads or sales incentives have been used.

Accepted Answer

A product usually declines when consumers switch to competing brands. This can happen because of various reasons like better features, lower prices, better marketing strategies, etc. The decline is an indication that the product is losing its relevance and market share. Technological advances or environmental factors can also contribute to the decline, but the primary reason is usually the competition from other brands.

Question 11

Which of the following is not generally considered to be a stage in the product life-cycle?
A) Introduction
B) Growth
C) Maturity
D) Transition
E) Decline

Accepted Answer

Transition is not generally considered to be a stage in the product life-cycle. The typical stages in a product life-cycle are Introduction, Growth, Maturity, and Decline.

Question 12

All of the following are characteristics of the introduction stage of the product life-cycle except
A) usually,a low profit or even a loss.
B) the appearance on the market of refinements or extensions of the original product.
C) relatively few competitors.
D) often,high price.
E) low consumer awareness and acceptance of the product.

Accepted Answer

The appearance of refinements or extensions of the original product is a characteristic of the growth stage, not the introduction stage. The other characteristics listed (low profit or loss, few competitors, high price, and low consumer awareness) are all associated with the introduction stage.

Question 13

The product life-cycle stage in which consumer awareness and acceptance of the product are low,there are few competitors,and there is a gradual rise in sales because of promotion is called
A) extension.
B) introduction.
C) growth.
D) decline.
E) maturity.

Accepted Answer

In the introduction stage, the product is newly launched, and consumers are not yet familiar with it. As a result, awareness and acceptance of the product are low. Competition is also less, allowing the product to gain a foothold in the market. Promotion activities are used to create awareness about the product, and as a result, sales start to rise gradually.

Question 14

All of the following are characteristics of the maturity stage of the product life-cycle except
A) a peak in the sales curve.
B) a decline in the sales curve.
C) simplification of product lines.
D) increased distribution.
E) increased price competition.

Accepted Answer

The answer of All of the following are characteristics of...

Question 15

General Mills has been able to extend the life of Bisquick baking mix by
A) significantly improving the product's formulation.
B) providing good customer service.
C) including recipes in the box.
D) improved advertising.
E) using personal selling.

Accepted Answer

The answer of General Mills has been able to extend...

Question 16

The product life-cycle stage in which there is a decrease in the rate of sales growth,the sales curve begins to decline,and dealers simplify their product lines is called
A) growth.
B) decline.
C) extension.
D) introduction.
E) maturity.

Accepted Answer

The described stage is Maturity wherein the sales growth slows down and eventually reaches a point of saturation which leads to a decline in sales growth. Dealers may simplify their product lines during this stage as they focus on products that are more profitable and popular among customers.

Question 17

The marketing challenge of making potential customers aware of the product's existence and its features,benefits,and uses is prevalent in which of the product life-cycle stages?
A) Introduction
B) Maturity
C) Extension
D) Decline
E) Growth

Accepted Answer

The introduction stage is characterized by the need for extensive marketing efforts to create awareness about the new product and its features, benefits, and uses, as it is a new entry in the market. Hence, making potential customers aware of the product's existence and its features, benefits, and uses is prevalent in this stage.

Question 18

In which order do the stages of the product life-cycle occur?
A) Growth,introduction,maturity,decline
B) Introduction,maturity,slowdown,decline
C) Innovation,distribution,maturity,decline
D) Introduction,growth,maturity,decline
E) Introduction,growth,slowdown,decline

Accepted Answer

The correct order of the stages of the product life-cycle is introduction, growth, maturity, and decline. During the introduction stage, the product is first launched into the market, followed by the growth stage where sales and revenue increase rapidly. The maturity stage is characterized by slower sales growth, more competitors in the market, and the need for product differentiation. Finally, the decline stage happens when sales and revenue begin to decrease, and the product is eventually phased out or replaced. Option D lists the correct sequence of stages.

Question 19

If Texas Instruments hires an accounting firm to compute the company's taxes,the accounting firm is providing a(n)____ service.
A) business
B) governmental
C) institutional
D) tangible
E) mandatory

Accepted Answer

The accounting firm is providing a business service, as it offers specialized expertise (in this case, tax computation) to another business (Texas Instruments). Business services are intangible and are aimed at supporting the operations of other businesses.

Question 20

The first stage of the product life-cycle is the ____ stage.
A) inventive
B) launching
C) discovery
D) introduction
E) growth

Accepted Answer

The introduction stage is the first stage of the product life-cycle. This is when the product is first launched into the market and sales begin to grow slowly. The main focus during this stage is to create awareness and generate interest in the product among potential customers.

Quiz 12: Creating and Pricing Products That Satisfy Customers

Sales of ABC Corporation's digital video cameras are rising rapidly,profits are peaking,and competitors are entering the market.ABC is able to maintain its market lead.Judging from this example,the digital video camera is in which stage of the product life-cycle?

Sheet steel to be used in making automobile fenders is an example of

If Mason,a poultry producer,decided to start producing veggie burgers,this would be an example of

When a product experiences sales revenue and profit increases,reaches a peak,and then declines,it goes through what is called

The product life-cycle stage in which there is a rapid sales increase,other firms have begun to market competing products,and lower unit costs and an overall tendency toward increased profit prevail is called

Koolers Incorporated feels that at its current stage-growth-it needs to meet its competition.It can best do this by all of the following means except

Razor Company's blades are in the maturity stage of the product life-cycle.How can the company strengthen its market share?

Paper,pencils,oils,and ____ are examples of supplies.

Arm & Hammer launches a campaign to extend the life of its baking soda products through improved packaging and new uses in products such as toothpaste and cat litter.These new uses of products and other modifications are generally created during the ____ phase of the product life-cycle.

A product usually declines because of technological advances or environmental factors or because

Which of the following is not generally considered to be a stage in the product life-cycle?

All of the following are characteristics of the introduction stage of the product life-cycle except

The product life-cycle stage in which consumer awareness and acceptance of the product are low,there are few competitors,and there is a gradual rise in sales because of promotion is called

All of the following are characteristics of the maturity stage of the product life-cycle except

General Mills has been able to extend the life of Bisquick baking mix by

The product life-cycle stage in which there is a decrease in the rate of sales growth,the sales curve begins to decline,and dealers simplify their product lines is called

The marketing challenge of making potential customers aware of the product's existence and its features,benefits,and uses is prevalent in which of the product life-cycle stages?

In which order do the stages of the product life-cycle occur?

If Texas Instruments hires an accounting firm to compute the company's taxes,the accounting firm is providing a(n) ____ service.

The first stage of the product life-cycle is the ____ stage.