Question 1

Companies need to pay attention to their aging products.Management should regularly review sales,market shares,costs and profit trends,and then decide whether to maintain,harvest or drop these declining products.

Accepted Answer

It is important for companies to review the performance of their aging products and make decisions on whether to maintain, harvest, or drop them based on sales, market shares, costs, and profit trends. Ignoring these products can negatively impact overall profitability and success.

Question 2

When a product reaches the decline phase of its life-cycle,death is inevitable and the product should be automatically dropped.

Accepted Answer

While it may be true that sales and profits may decline during this phase, it is not necessarily true that the product should be automatically dropped. Companies may choose to continue selling the product if it still has a loyal customer base or if it can be marketed to a niche market. They may also choose to invest in product improvements or rebranding efforts to extend the life of the product.

Question 3

A(n)________ is a fashion that enters quickly and is adopted with great zeal and is characterised by a product life-cycle showing an early peak and quick decline.

Accepted Answer

The answer of A(n)________ is a fashion that enters quickly...

Question 4

The course of a product's sales and profits during its lifetime is known as the ________ ________-________.

Accepted Answer

The answer of The course of a product's sales and...

Question 5

During the product ________ stage of the product life-cycle,sales are zero and a company's investment costs add up.

Accepted Answer

The answer of During the product ________ stage of the...

Question 6

If a firm can afford to retain its declining product until major competitors withdraw from the market,it may enjoy several more years of satisfactory profits.

Accepted Answer

Retaining a declining product until major competitors withdraw from the market can allow for the firm to continue earning profits for several more years.

Question 7

A(n)________ is a basic and distinctive mode of expression which has a product life-cycle showing several periods of renewed interest.

Accepted Answer

The answer of A(n)________ is a basic and distinctive mode...

Question 8

The ________ stage of the product life-cycle is a period of rapid market acceptance and increasing profits.

Accepted Answer

The answer of The ________ stage of the product life-cycle...

Question 9

The ________ stage of the product life-cycle is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers.

Accepted Answer

The answer of The ________ stage of the product life-cycle...

Question 10

A major 'hidden' cost associated with keeping a weak product is that it may delay the search for,and introduction of,products the firm may need to assure future profitability.

Accepted Answer

If a company focuses too much on trying to improve a weak product, they may miss out on opportunities to develop new and better products that would ensure long-term profitability. This delay can have significant costs in terms of lost market share and revenue. Therefore, it is important for companies to recognize the hidden cost of keeping a weak product and make strategic decisions accordingly.

Question 11

During the ________ stage of the product life-cycle,profits are non-existent because of the heavy expenses incurred,past and present.

Accepted Answer

The answer of During the ________ stage of the product...

Question 12

A(n)________ is a currently accepted or popular style in a given field and is characterised by a product life-cycle showing slow growth,a period of popularity and then a slow decline.

Accepted Answer

The answer of A(n)________ is a currently accepted or popular...

Question 13

During the growth stage of the PLC,the strategic focus should be on defending market share.

Accepted Answer

During the growth stage of the Product Life Cycle (PLC), the strategic focus is typically on building brand preference and increasing market share, rather than defending it, as the market is expanding and the product is attracting new customers.

Question 14

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 that remain in the maturity stage of the PLC may seem unchanged, but the most successful ones actually evolve to meet changing consumer needs through innovation, improved features, new packaging, and other strategies.

Question 15

Profits rise during the growth stage of the PLC because promotion costs are spread over a large volume,and unit manufacturing costs fall.

Accepted Answer

During the growth stage of the PLC, sales volume increases which helps to spread the fixed promotion costs over a larger number of units, reducing the promotion cost per unit. Additionally, as production volume increases, unit manufacturing costs decrease due to economies of scale, leading to higher profits.

Question 16

Sales for the time-tried household cleansers made by Brite and New,Inc.have been declining for some time.If these products are typical,sales are declining because of technological advances,shifts in consumer tastes and lack of raw materials from foreign suppliers.

Accepted Answer

The answer of Sales for the time-tried household cleansers made...

Question 17

In the growth stage of the product life-cycle,the firm faces a trade-off between high ________ ________ and high ________ ________.

Accepted Answer

The answer of In the growth stage of the product...

Question 18

Market modification involves the search for new users and market segments and\or the attempt to increase usage among present customers.

Accepted Answer

Market modification is focused on expanding the customer base by finding new users or segments and increasing usage among existing customers.

Question 19

If sales of a product falter during the maturity phase of the PLC,a company can take several approaches.The more common ones are to modify the marketing mix,modify the product or modify the market.

Accepted Answer

This statement is true. When sales of a product falter during the maturity phase of the PLC, a company can take different approaches to revive its product. Some of the common approaches are modifying the marketing mix to reach new customers, modifying the product to improve its features or functionalities, or modifying the market by expanding the product's target audience or geographic scope.

Question 20

When a company decides to maintain a product in the decline stage,it will reduce costs and hope that sales hold up to increase the profits in the short run.

Accepted Answer

The answer of When a company decides to maintain a...

Quiz 8: Products, Services and Brands: Building Customer Value