Question 1

During the various stages of the product life cycle, the attitudes and needs of target customers do not change.

Accepted Answer

The attitudes and needs of target customers often change throughout the different stages of the product life cycle, as they become more familiar with the product, competitors enter the market, and new technologies or trends emerge. Companies need to continually monitor and adapt to these changes in order to successfully market their product.

Question 2

The product life cycle describes the stages a really new product idea goes through from beginning to end.

Accepted Answer

This is correct. The product life cycle consists of the stages of introduction, growth, maturity, and decline.

Question 3

Sales and profits usually move together over time during the product life cycle.

Accepted Answer

False

Question 4

Sales and profits generally decrease continually throughout the product life cycle.

Accepted Answer

This statement is false. Sales and profits may decrease during certain stages of the product life cycle, such as during the decline stage, but they can also increase during other stages, such as during the growth stage. Ultimately, the product life cycle can vary depending on the industry, market, and specific product.

Question 5

In the market growth stage of the product life cycle, firms usually earn smaller profits than they did in the market introduction stage because new competitors enter the market.

Accepted Answer

In the market growth stage, firms often experience increased profits due to higher sales volumes, even though new competitors may enter the market. This stage is characterized by rapid market expansion.

Question 6

Product life cycles describe industry sales and profits within a particular product-market, and not the sales and profits of individual brands.

Accepted Answer

Product life cycles refer to the performance of an entire industry, not just one brand. They depict the stages of a product-market, from introduction to decline, and how the industry changes during each stage in terms of sales and profits.

Question 7

During the sales decline stage of the product life cycle, no firm can earn a profit.

Accepted Answer

While it may become more difficult to earn a profit during the sales decline stage, it is not impossible. Companies can still employ strategies such as cost-cutting, increasing prices, or targeting niche markets to stay profitable.

Question 8

The product life cycle shows that sales of an individual firm's brand follows a general pattern-which is very useful for marketing strategy planning.

Accepted Answer

The answer of The product life cycle shows that sales...

Question 9

The market maturity stage of the product life cycle has very low promotion expenditures, little price competition, and rising industry profits.

Accepted Answer

The market maturity stage of the product life cycle typically has high promotion expenditures, intense price competition, and stable industry profits.

Question 10

The sales and profits of an individual brand always follow the life-cycle pattern.

Accepted Answer

The sales and profits of an individual brand may not always follow the life-cycle pattern. External factors such as competition, changes in market trends, and economic conditions can also affect the brand's performance.

Question 11

Market introduction, market growth, market maturity, and sales decline are the four stages of the product life cycle.

Accepted Answer

This statement is true, as the product life cycle theory includes these four stages which an individual product or a product category may go through.

Question 12

The sales and profits of an individual brand may or may not follow the life cycle pattern of the product idea.

Accepted Answer

The sales and profits of an individual brand can be influenced by various factors such as changes in competition, consumer preferences, market trends, and marketing strategies. Therefore, it is possible for a brand's sales and profits to deviate from the typical life cycle pattern of the product idea.

Question 13

In the market introduction stage, sales are low as a new idea is first introduced to a market.

Accepted Answer

During the market introduction stage, sales are typically low as the product is being introduced to the market for the first time.

Question 14

It is still possible for a firm to earn a profit if it operates in the sales decline stage of the product life cycle.

Accepted Answer

While sales may be declining, the firm can still earn a profit through cost-cutting measures, increased efficiency, and finding ways to maintain customer loyalty. Additionally, there may still be a segment of loyal customers who continue to purchase the product. However, it may become increasingly difficult to sustain profits in the long term without a product update or innovation to revitalize sales.

Question 15

The product life cycle is the four stages a new product idea goes through from beginning to end.

Accepted Answer

The product life cycle includes the stages of introduction, growth, maturity, and decline.

Question 16

Industry profits usually decline steadily during the market maturity stage of the product life cycle.

Accepted Answer

Industry profits usually decline during the market maturity stage due to increased competition and saturation of the market.

Question 17

The market maturity stage of the product life cycle rarely lasts more than one or two months.

Accepted Answer

The market maturity stage of the product life cycle can last several months to several years, depending on various factors such as competition, consumer behavior, and innovation.

Question 18

During the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline.

Accepted Answer

During the market growth stage, competition increases, leading to a decline in industry profits as companies lower their prices to attract customers. The peak of profits usually occurs during the maturity stage, after which they start to decline.

Question 19

The product life cycle concept is concerned with planning for product recycling to protect the environment.

Accepted Answer

The product life cycle concept is a marketing concept that describes the stages a product goes through from introduction to decline. It does not specifically address product recycling and environmental protection.

Question 20

The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits.

Accepted Answer

The market introduction stage is characterized by high costs and low sales, as companies invest in research, development, and marketing to introduce the product to the market. Therefore, losses are often incurred during this stage.

Quiz 9: Product Management and New-Product Development