3.1 The product life cycle

1.

Multiple Choice

30 sec

1 pt

During this stage, a business will research and devlop the product. Product testing and trials takes place.

Development

Introduction

Growth

Maturity

Decline

2.

Multiple Choice

30 sec

1 pt

During this stage, the product is launched. Usually a loss is made during this phase as Sales are low (but increasing)

Development

Introduction

Growth

Maturity

Decline

3.

Multiple Choice

30 sec

1 pt

During this stage, products sales increase profits start to be made. A business may need to increase outlets to reach new markets.

Development

Introduction

Growth

Maturity

Decline

4.

Multiple Choice

30 sec

1 pt

During this stage, sales rate starts to slow, perhaps a competitor has launched something similar or customers just want something new.

Development

Introduction

Growth

Maturity

Decline

5.

Multiple Choice

30 sec

1 pt

During this stage, sales start to fall. Extension strategies needed to pick up sales again.

Development

Introduction

Growth

Maturity

Decline

6.

Multiple Choice

30 sec

1 pt

Actions a business can take to extend the life of a product and increase sales.

Extension strategies

Introduction

Growth

Maturity

Decline

7.

Multiple Choice

20 sec

1 pt

Which stage has rapid sales?

introduction

maturity

decline

growth

8.

Multiple Choice

20 sec

1 pt

Which stage has lots of competitors?

growth

maturity

introduction

decline

9.

Multiple Choice

20 sec

1 pt

Which stage has the least production costs?

introduction

maturity

decline

growth

10.

Multiple Select

20 sec

1 pt

What should a business do in the intro stage?

make lots of their product

build up sales

increase staff numbers

increase customer awareness

11.

Multiple Select

20 sec

1 pt

What could a business do in the decline stage?

remove the product from the market

use a product extension strategy

increase production

sack the directors and start again

12.

Multiple Choice

30 sec

1 pt

What is happening at point D on the Product Life Cycle?

Introduction

Decline

Maturity

Growth

13.

Multiple Choice

30 sec

1 pt

The product life cycle shows the different stages that a product passes through and sales that can be expected at each stage

True

False

14.

Multiple Choice

30 sec

1 pt

What is happening at point F of the Product Life Cycle?

Growth

Maturity

Extension Strategy

Introduction

15.

Multiple Choice

30 sec

1 pt

What is happening at point C on the Product Life Cycle?

Introduction

Decline

Maturity

Growth

16.

Multiple Choice

30 sec

1 pt

What is the term used for extending a product life cycle?

Extension Strategies

Product Sales

Service Expansion

Business Growth

17.

Multiple Choice

30 sec

1 pt

A possible extension strategy is to add value. This means

Increasing the price of the product

Decreasing the price of the product

Add new features to the existing product

18.

Multiple Choice

30 sec

1 pt

A possible extension strategy is to invest in advertising. The drawback of this is that...

Adverts can be very expensive and do not gurantee increased sales.

It may attract new customers

The business may not have full control

Adverts are repetitive

19.

Multiple Choice

30 sec

1 pt

A possible extension strategy is to invest in new packaging. The advantage of this is that...

the improved packaging can give the impression of better quality.

Packaging is not very expensive

Packaging may look attractive

20.

Multiple Choice

30 sec

1 pt

Which one of the following is NOT an extension strategy

advertising

change the price of a product

add value

Explore new markets

Lower production and eventually discountiue the product.

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