Question 1

According to the text,which of the following statements about the product life cycle is true?

Accepted Answer

The product life cycle is often used as a forecasting tool to anticipate changes in sales and market conditions as a product progresses through its stages.

Question 2

Which stage of the product life cycle would feature very high promotional expenditures in an attempt to create customer awareness?

Accepted Answer

During the introduction stage, the product is new in the market and lacks brand awareness among the customers. Therefore, the company spends heavily on promotional activities to create awareness among the customers and generate interest in the product. This stage is characterized by high promotional expenditures, and thus the best choice is option B.

Question 3

The advertising strategy during the growth stage of the product life cycle should be to do what?

Accepted Answer

During the growth stage, the product is becoming more established in the market and gaining more customers. Therefore, the advertising strategy should focus on making the mass market aware of the brand benefits and features. This can help to differentiate the product from competitors and establish the brand as a leader in the market. It is not appropriate to emphasize the product's low price at this stage, as this could reduce the perceived value of the product. Additionally, using advertising as a vehicle for introducing the product category benefits or making the market aware of product category brands may be more appropriate during the introduction stage of the product life cycle.

Question 4

Which of the following products is most likely to be in the decline stage of its product life cycle?

Accepted Answer

Prerecorded audiocassette tapes have been largely replaced by digital media, such as CDs and streaming services, and are therefore likely in the decline stage of their product life cycle. Programmable CD-ROMs, wireless mobile phones, and sports drinks are all still widely used and are likely in the growth or maturity stages of their product life cycles.

Question 5

Why do profits increase during the growth stage of the product life cycle?

Accepted Answer

During the growth stage, the product is gaining wider acceptance and sales are increasing rapidly. However, competition has not yet peaked, and the company can enjoy relatively high profit margins due to low competitive pressure. As the market becomes more saturated, profits will decrease, and competition will intensify.

Answer: D 
 Another reason profits may increase during the growth stage is that prices charged for the product may rise as demand increases. However, this is not always the case and may depend on the specific industry and competitors.

Question 6

Laptop computers,pet food,cake mixes,DVDs,and recreational vehicles are examples of what?

Accepted Answer

Laptop computers, pet food, cake mixes, DVDs, and recreational vehicles are all examples of product categories that satisfy a particular type of need. These products serve different purposes and meet different consumer needs, but all belong to distinct categories of products. For example, laptops are a type of computer used for work and personal use, while pet food is a type of food consumed by pets. These products are not line-extendable or part of a product life cycle line, as they are distinct categories of products with their own unique features and characteristics.

Question 7

Otto-Light is a desk light that lets hobbyists match colour swatches accurately without going outside.It's like convenient,natural sunlight inside.The lights have high marketing costs,are sold with high dealer margins,and have high production costs.Ads for the product aim at educating craftspeople who work with fabrics and paints about the benefits of the Otto-Light.In which stage of the product life cycle is the light?

Accepted Answer

The product is being advertised to educate people about its benefits, which suggests that it is in the introductory stage of the product life cycle.

Question 8

Ortho Products would like to estimate the length of time that its new product,the Sonar Brush (cleans teeth without touching them),will stay in the introductory phase of its product life cycle.What do you tell management?

Accepted Answer

The length of the introductory phase of a product's life cycle is largely determined by the level of relative advantage the product has over what is currently being used. In the case of the Sonar Brush, if it can offer a significant advantage over traditional toothbrushes in terms of effectiveness and convenience, it is likely to have a shorter introductory phase. Therefore, management should focus on determining the relative advantage of the Sonar Brush and how it can be effectively communicated to its target market to accelerate the product's adoption.

Question 9

Post has been manufacturing and marketing breakfast cereals for over 100 years.It spends much of its marketing budgets on short-term promotions aimed at stealing market share from General Mills and other cereal manufacturers.From this information,you should know that cereals are in the which stage of their product life cycle?

Accepted Answer

Post's focus on short-term promotions and competition with other cereal manufacturers suggest that cereals are in the maturity stage of their product life cycle. It is likely that the market is saturated and there is limited potential for growth, so companies are primarily focused on maintaining their market share and stealing customers from their competitors.

Question 10

What is the phase of the product life cycle in which healthy profits usually begin to appear?

Accepted Answer

During the growth phase of the product life cycle, sales start to increase significantly, leading to healthy profits as the product gains acceptance in the market and attracts a larger customer base.

Question 11

What happens toward the end of the growth stage of the product life cycle?

Accepted Answer

During the growth stage of the product life cycle, demand for the product increases and competitors enter the market. However, as the market becomes saturated, the growth rate slows down and eventually reaches a plateau. This is when profits peak before declining in the next stage, maturity. Therefore, the correct choice is C.

Question 12

Typically,at the beginning of the maturity stage of the product life cycle,what happens to sales?

Accepted Answer

During the maturity stage of the product life cycle, sales increase at a decreasing rate. This means that although the sales are still growing, their rate of growth is slowing down as the market becomes saturated and competition increases. Eventually, sales will plateau and eventually decline in the decline stage of the product life cycle.

Question 13

What happens during the maturity stage of the product life cycle?

Accepted Answer

During the maturity stage of the product life cycle, promotion to the dealer is often intensified to encourage them to support the product and help differentiate it from the competition. This is a strategy to maintain sales levels as the market becomes saturated.

Question 14

Zippy Construction Ltd.has been experiencing extremely tough competition in recent months for its specialty housing components.Fred Farkle,President of Zippy Construction,was reading the latest industry statistics on overall sales of specialty components and noted that revenues had plateaued.It is likely that Mr.Farkle was facing which stage of the product life cycle?

Accepted Answer

The plateauing of revenues indicates that the market for specialty housing components has reached its maturity stage, where sales growth has slowed down or halted altogether.

Question 15

According to the text,which of the following statements about the product life cycle is true?

Accepted Answer

The text states that "the product life cycle is especially useful as a predicting tool," indicating that it is a useful tool for predicting the stages a product may go through. The other answer choices are not supported by the text; A is incorrect as the text does not suggest that marketers do not understand the relationship between adopter categories and product life cycle stages, B is incorrect as the product life cycle concept encourages proactive thinking rather than reactive thinking, and D is incorrect as the text does not mention that there are five stages of the product life cycle.

Question 16

What can the marketers of consumer products expect to find when they study and apply the product life cycle theory to their products?

Accepted Answer

The product life cycle theory suggests that changes in a product, such as updates or improvements, can indeed alter its life cycle by potentially extending its maturity phase or rejuvenating its appeal to consumers. This concept is fundamental in marketing strategies to maintain or increase a product's market share.

Question 17

The length of the introductory stage of the product life cycle for a new product is largely determined by which of the following?

Accepted Answer

The length of the introductory stage of the product life cycle is largely determined by product characteristics, such as advantages over substitute products. This is because consumers take time to become aware of the new product and its benefits, and may need to be convinced to switch from their current options. Other factors such as efficient test marketing and the product's marketing mix may influence the success of the introductory stage, but they do not necessarily determine its length. The size of the product is also not a significant factor in determining the length of the introductory stage.

Question 18

Normally,what is the longest stage of the product life cycle?

Accepted Answer

Maturity is typically the longest stage of the product life cycle, during which sales growth slows down and stabilizes. The product has achieved widespread adoption and market saturation, and competitors have entered the market. During this stage, companies need to focus on maintaining market share, managing costs, and possibly extending the life cycle of the product through product improvements or marketing strategies.

Question 19

A long-run drop in sales signals the beginning of which stage in the product life cycle?

Accepted Answer

A long-run drop in sales is indicative of the decline stage in the product life cycle. At this stage, the product experiences a decrease in demand as it begins to face increased competition, outdated technology or features, and changing consumer preferences.

Question 20

Firebrand Technologies has been researching and developing a revolutionary product in its company labs for the past five years.The company has just finished developing a cigarette that is smokeless and contains no nicotine.Firebrand is looking forward to a very profitable product launch.What stage of the product life cycle is the company in?

Accepted Answer

The company just finished developing the product, but has not launched it yet. This indicates that the company is in the introduction stage of the product life cycle.

Quiz 9: Developing and Managing Products

According to the text,which of the following statements about the product life cycle is true?

Which stage of the product life cycle would feature very high promotional expenditures in an attempt to create customer awareness?

The advertising strategy during the growth stage of the product life cycle should be to do what?

Which of the following products is most likely to be in the decline stage of its product life cycle?

Why do profits increase during the growth stage of the product life cycle?

Laptop computers,pet food,cake mixes,DVDs,and recreational vehicles are examples of what?

Ortho Products would like to estimate the length of time that its new product,the Sonar Brush (cleans teeth without touching them) ,will stay in the introductory phase of its product life cycle.What do you tell management?

What is the phase of the product life cycle in which healthy profits usually begin to appear?

What happens toward the end of the growth stage of the product life cycle?

Typically,at the beginning of the maturity stage of the product life cycle,what happens to sales?

What happens during the maturity stage of the product life cycle?

According to the text,which of the following statements about the product life cycle is true?

What can the marketers of consumer products expect to find when they study and apply the product life cycle theory to their products?

The length of the introductory stage of the product life cycle for a new product is largely determined by which of the following?

Normally,what is the longest stage of the product life cycle?

A long-run drop in sales signals the beginning of which stage in the product life cycle?