Question 1

The PLC concept can be applied by marketers as a useful framework for describing how ________.
A) competitors' moves are predicted
B) marketing strategies are developed
C) products and markets work
D) concept testing is conducted
E) product ideas are developed

Accepted Answer

PLC stands for "Product Life Cycle," which describes how products behave in the market over time. This framework helps marketers understand the different stages that products go through, including introduction, growth, maturity, and decline, and how marketing strategies might need to adapt at each stage. Therefore, PLC can be applied by marketers as a useful framework for describing how products and markets work.

Question 2

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." iPods have been sold in huge numbers, and Apple captures a large share of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption

Accepted Answer

The iPod has been on the market for over 15 years and is no longer in the introduction or growth stage. It has reached its peak sales and market share, and its sales are now declining due to increasing competition and changing consumer preferences, indicating the maturity stage.

Question 3

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.
A) laggard
B) decline
C) maturity
D) growth
E) incubation

Accepted Answer

The decline stage is characterized by a significant drop in sales either to zero or to a consistently low level that persists for many years. This occurs primarily due to market saturation, changes in consumer preferences, or increased competition.

Question 4

A style is best defined as a ________.
A) currently popular trend in retail goods
B) popular consumer taste at a given time
C) temporary period of unusually high sales
D) short-term component of the marketing mix
E) basic and distinctive mode of expression

Accepted Answer

A style is a basic and distinctive mode of expression that helps identify a specific design or product. It is not necessarily limited to a currently popular trend or a temporary period of high sales. It is also not just a short-term component of the marketing mix. A style can be timeless and enduring, reflecting a popular consumer taste that transcends fads and trends.

Question 5

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 normally lasts the longest and poses strong challenges to marketing managers. During this stage, sales growth slows down, competition gets tougher, and customers become more selective. Marketers need to focus on maintaining market share, differentiation, and cost control strategies to stay competitive. They also need to find ways to extend the product life cycle and identify new market opportunities to sustain growth. Therefore, the maturity stage is a critical phase for marketers and requires careful planning and execution.

Question 6

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

As a market pioneer, Big Moose Toys needs to ensure that the launch strategy for Bubble the Moose is consistent with the intended placement of the product in the market. This involves product positioning, which refers to how a product is perceived by consumers in relation to other products in the same category.

Question 7

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 maintain or increase its market share. This may involve introducing new features, changing pricing or promotions, or expanding distribution channels. Harvesting the product or market, divesting the product line, liquidating assets, or dropping the product from its offerings may not be the best options at this stage.

Question 8

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 9

Some products that have entered the decline stage have been cycled back to the growth stage through ________.
A) repositioning
B) harvesting
C) maintaining
D) pruning
E) expanding

Accepted Answer

Repositioning involves making changes to the product's marketing mix, such as its target audience or brand image, in order to appeal to a new group of customers or meet a new need. This can help revive interest in a declining product and lead to renewed growth.

Question 10

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?
A) growth
B) product development
C) maturity
D) introduction
E) decline

Accepted Answer

The stage of introduction is characterized by high promotional expenditures that are used to create consumer awareness of the new product. It is the first stage of the PLC where the product is introduced to the market and promotional efforts are focused on creating awareness and generating interest among consumers.

Question 11

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 means that there is excess production capacity in the market. This can lead to increased competition as companies try to maintain market share and sales by lowering prices and increasing promotional activity. This can ultimately result in a price war, which benefits consumers but can be detrimental to companies' profits.

Question 12

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 13

The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s. This is an example of a ________.
A) style
B) fashion
C) fad
D) subculture
E) norm

Accepted Answer

The shift from formal business attire to business casual was a change in fashion, which refers to the prevailing style or trend at a particular time. A fad is a short-lived trend, while a subculture is a group with shared beliefs or interests. A norm is a standard of behavior that is socially accepted.

Question 14

P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. In these examples, management decided to ________ the products.
A) modify
B) maintain
C) drop
D) harvest
E) franchise

Accepted Answer

The phrase "sold off" in the sentence suggests that management decided to drop these products rather than maintain or modify them. The term "harvest" often refers to the strategic process of maximizing profits from a declining brand before ultimately phasing it out, but there is no indication that this was the case with Oxydol or Jif. Franchising would involve selling the right to operate a business using the P&G brand, which does not apply here.

Question 15

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, which suggests that the cereal is in the growth stage of the product life cycle. In this stage, the product is gaining market acceptance and sales are increasing rapidly.

Question 16

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 trying to extend the product's life by selling it to a different market segment (restaurants and hotels) indicates that they are in the decline stage of the product life cycle.

Question 17

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, a typical product goes through four stages: introduction, growth, maturity, and decline. Most products in the marketplace are in the maturity stage, where sales growth has slowed down, and the product has reached its peak level of acceptance and market saturation.

Question 18

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

Heinz was modifying its product, specifically the packaging and color options, in order to revitalize consumer buying.

Question 19

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 in the market for a long time and have expanded globally, indicating that they are past the introduction stage. They have also become an established, well-known brand, indicating maturity. However, there is no evidence to suggest that they are in decline or incubation. Therefore, the best choice is C - maturity.

Question 20

Flurrbies, a brand of unique winter accessories that quickly fell in and out of favor with customers, is an example of a ________.
A) style
B) fashion
C) fad
D) norm
E) subculture

Accepted Answer

Flurrbies were a temporary phenomenon that quickly gained popularity and then faded away, classifying them as a fad.

Quiz 9: New Product Development and Product Life-Cycle Strategies

The PLC concept can be applied by marketers as a useful framework for describing how ________.

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

A style is best defined as a ________.

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

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

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?

Some products that have entered the decline stage have been cycled back to the growth stage through ________.

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?

Which of the following would lead to greater competition in the maturity 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.

The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s. This is an example of a ________.

P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. 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 ________.

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.

Flurrbies, a brand of unique winter accessories that quickly fell in and out of favor with customers, is an example of a ________.