Question 1

During the growth stage of the product life cycle, marketers must
A) fortify the product position.
B) move to exclusive distribution.
C) raise the price.
D) increase promotion as a percentage of sales.
E) introduce private brands.

Accepted Answer

During the growth stage of the product life cycle, the product has gained acceptance among the target market, and sales are increasing rapidly. To build a stronger position for the product, marketers need to fortify its position by improving its quality, adding new features, and enhancing its image. This can help differentiate the product from competitors and increase customer loyalty, which will help sustain sales growth. Moving to exclusive distribution or introducing private brands is not necessary during this stage, and raising the price could slow down the growth rate. While promotion may need to increase, it should not necessarily increase as a percentage of sales, as this may not be cost-effective.

Question 2

Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer?
A) Maturity
B) Growth
C) Introduction
D) Market reduction
E) Decline

Accepted Answer

During the maturity stage, competition is intense, and producers often offer promotional assistance to dealers to maintain market share and encourage continued sales.

Question 3

Mercedes-Benz recognized it needed to revitalize its brand and attract different market segments. These are indications that Mercedes-Benz's products were primarily in the ____ stage of the product life cycle.
A) maturity
B) growth
C) introduction
D) market testing
E) decline

Accepted Answer

The answer of Mercedes-Benz recognized it needed to revitalize its...

Question 4

Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy?
A) Decline
B) Expansion
C) Growth
D) Introduction
E) Stabilization

Accepted Answer

During the growth stage, a product gains acceptance and starts to generate revenue. However, during this stage, competitors may take notice of the product's success, and their reactions to it will directly affect its life expectancy. Therefore, it is critical to a product's survival to navigate through the growth stage successfully.

Question 5

When banks add new services during the maturity stage, the objective they are most likely trying to achieve is
A) pruning items from the product line.
B) generating cash flow.
C) maintaining their market share.
D) filling geographic gaps.
E) increasing their market share.

Accepted Answer

During the maturity stage, where the market is saturated, adding new services can provide a way for banks to differentiate themselves from their competitors and attract new customers, increasing their market share.

Question 6

When a product experiences an increase in the number of competitors, it is usually in the _____ stage of the product life cycle; however, when that competition becomes intense, it is in the ____ stage.
A) introduction; maturity
B) introduction; growth
C) growth; decline
D) growth; maturity
E) maturity; decline

Accepted Answer

When a product experiences an increase in the number of competitors, it is usually in the growth stage of the product life cycle as the product is gaining market acceptance and attracting new entrants. However, when that competition becomes intense, it is in the maturity stage as the market becomes saturated and competitors start to cut prices and increase promotional activities to protect their market share. Hence, Option D is the correct answer.

Question 7

In which stage of the product life cycle do profits begin to decrease?
A) Introduction
B) Growth
C) Maturity
D) Decline
E) Recovery

Accepted Answer

The answer of In which stage of the product life...

Question 8

Grand Resorts Hawaii has just celebrated its first profit since opening two years ago. Grand Resorts Hawaii is most likely in the ____ stage of the product life cycle.
A) maturity
B) growth
C) introduction
D) market testing
E) stability

Accepted Answer

Grand Resorts Hawaii is showing growth as it has recently celebrated its first profit. This indicates that the product is gaining market acceptance and moving towards maturity.

Question 9

The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ____ stage of the product life cycle.
A) decline
B) evaluation
C) growth
D) introduction
E) maturity

Accepted Answer

The large advertising expenditures and more price flexibility indicate that the product is in the maturity stage of the product life cycle, where heavy competition often leads to increased promotion and price wars. This stage is characterized by a slowing of sales growth, but still significant sales volume.

Question 10

One of Cole's responsibilities as a marketing manager for a motorcycle parts manufacturer is to maintain market share. Cole believes that the company's products are most likely in the maturity stage of the product life cycle. In order to maintain market share, Cole should suggest that the company requires
A) moderate to large advertising expenditures.
B) moderate to large cuts in promotion expenditures.
C) moderate production expenditures.
D) moderate price increases.
E) moderate price decreases.

Accepted Answer

In the maturity stage of the product life cycle, competition is high and sales growth is slowing down. Therefore, maintaining market share requires increased advertising expenditures to differentiate the company's products from competitors and to encourage brand loyalty. This will help the company to maintain its position in the market.

Question 11

Aggressive pricing is typical during the ____ stage of the product life cycle.
A) decline
B) growth
C) introduction
D) plateau
E) stabilization

Accepted Answer

During the growth stage of the product life cycle, demand for the product increases, and competitors begin to enter the market. To maintain market share and attract new customers, companies often engage in aggressive pricing strategies, such as offering discounts or lowering prices below competitors.

Question 12

Sales usually start to decline during the ____ stage of the product life cycle.
A) beginning of the termination
B) end of the growth
C) beginning of the decline
D) beginning of the growth
E) end of the maturity

Accepted Answer

Sales typically start to decline at the end of the maturity stage as the market becomes saturated and competition increases, leading to a decrease in demand.

Question 13

When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ____ stage of the product life cycle.
A) maturity
B) growth
C) introduction
D) market reduction
E) decline

Accepted Answer

The answer of When a business finds itself squeezed out...

Question 14

Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so, the profits for the InstaCup coffee maker ___ and the number of competitors ____.
A) are negative; is growing
B) have peaked; is growing
C) are declining; is growing
D) have peaked; is declining
E) are declining; is declining

Accepted Answer

In the growth stage of the product life cycle, profits typically peak due to increased sales, and the number of competitors grows as other companies enter the market to capitalize on the high demand.

Question 15

During the maturity stage
A) product modifications are unnecessary.
B) there is less emphasis on changing a product's price.
C) marketing strategies are rarely altered.
D) some competitors are forced out.
E) limited advertising expenditures are required to maintain market share.

Accepted Answer

During the maturity stage, the competition becomes more intense and some competitors may exit the market. This typically happens as market demand begins to level off and the remaining firms must compete for a relatively fixed number of customers, making it harder for new firms to enter the market. Product modifications may still be necessary to differentiate from competitors, marketing strategies may need to be adjusted, and advertising expenditure may still be necessary to maintain market share. However, there is typically less emphasis on changing a product's price during this stage as customers have established their expectations and switching to a different product may become less common.

Question 16

When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ____ stage of the product life cycle.
A) introduction
B) growth
C) stabilization
D) maturity
E) decline

Accepted Answer

The introduction stage is characterized by low sales and high costs as the product is being launched into the market. The growth stage sees sales picking up and profits increasing. Stabilization occurs when sales growth starts to slow down, and the product reaches its peak level of sales. Maturity follows as the product's sales growth rate slows to a crawl, and profits level off. Finally, the decline stage occurs when the product's sales start to decline as consumers move on to newer and better products. Since Clorox introduced its no-drip bleach in response to its existing product's maturity, we can infer that the product is in the maturity stage. Therefore, the best answer is D.

Question 17

Heinz promoting its vinegar as an effective cleaner for wall, glass, kitchen, and bathroom surfaces would most likely be a strategy for the ____ stage of the product life cycle.
A) introduction
B) decline
C) growth
D) maturity
E) competitive

Accepted Answer

Promoting a product's alternative uses and benefits, such as vinegar as a cleaner, is a common strategy during the maturity stage of the product life cycle. This stage is marked by slowing sales growth and increased competition, which motivates companies to focus on creating new uses or identifying new market segments for their products.

Question 18

Achieving greater penetration of the market is typically a business goal during the ____ stage of the product life cycle.
A) maturity
B) growth
C) introduction
D) market testing
E) decline

Accepted Answer

During the growth stage of the product life cycle, companies are focused on expanding their market reach and increasing sales volume. This is the stage where the product is gaining acceptance and popularity among consumers, and companies aim to capitalize on this momentum by aggressively promoting the product and expanding distribution channels. Therefore, achieving greater penetration of the market is a common business goal during this stage.

Question 19

Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle?
A) Lowering prices after developmental costs have been recovered
B) Raising promotion expenditures as a percentage of total sales
C) Moving from intensive to selective distribution
D) Raising prices to encourage competitors to enter the market
E) Reducing the number of product models in the product line

Accepted Answer

The answer of Which of the following tactics would typically...

Question 20

Dish Network cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ____ stage of its life cycle.
A) introduction
B) growth
C) maturity
D) early
E) decline

Accepted Answer

Dish Network's actions indicate that its industrial satellite product is in the decline stage of its life cycle, where the company reduces marketing and promotion expenses and eliminates unprofitable channels.

Quiz 11: Product Concepts, Branding, and Packaging

During the growth stage of the product life cycle, marketers must

Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer?

Mercedes-Benz recognized it needed to revitalize its brand and attract different market segments. These are indications that Mercedes-Benz's products were primarily in the ____ stage of the product life cycle.

Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy?

When banks add new services during the maturity stage, the objective they are most likely trying to achieve is

When a product experiences an increase in the number of competitors, it is usually in the _ stage of the product life cycle; however, when that competition becomes intense, it is in the stage.

In which stage of the product life cycle do profits begin to decrease?

Grand Resorts Hawaii has just celebrated its first profit since opening two years ago. Grand Resorts Hawaii is most likely in the ____ stage of the product life cycle.

The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ____ stage of the product life cycle.

Aggressive pricing is typical during the ____ stage of the product life cycle.

Sales usually start to decline during the ____ stage of the product life cycle.

When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ____ stage of the product life cycle.

Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so, the profits for the InstaCup coffee maker _ and the number of competitors __.

During the maturity stage

When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ____ stage of the product life cycle.

Heinz promoting its vinegar as an effective cleaner for wall, glass, kitchen, and bathroom surfaces would most likely be a strategy for the ____ stage of the product life cycle.

Achieving greater penetration of the market is typically a business goal during the ____ stage of the product life cycle.

Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle?

Dish Network cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ____ stage of its life cycle.