Deck 10: Life Cycle Management

Question 1

Product Life Cycle Theory is useful when determining how competitors may react to your new product.

Answer 1

False

Question 2

The maturity stage demands that companies significantly increase their promotional budget to capture as much market share as possible.

Answer 2

False

Question 3

Because PLC theory can lead to self-fulfilling decision-making among managers, it is recommended that it be only used as a general guide.

Answer 3

True

Question 4

The most important advantage of PLC theory is that it accounts for several variables that impact the sales of a product.

Question 5

Product platforms provide a common platform on which new products can be added to an existing product family.

Question 6

A company can influence a product's life cycle.

Question 7

Which stage of the product life cycle presents a negative sales curve?

A) Decline
B) Growth
C) Introduction
D) Maturity

Question 8

The product lifecycle describes the sales of a product from _________ to _________.

A) Introduction; Decline
B) Introduction; Maturity
C) Introduction; Growth
D) Birth; Death

Question 9

Maximizing market share is a key objective of the _________ stage.

A) Growth
B) Introduction
C) Decline
D) Maturity

Question 10

A _________ attempts to maximize or maintain profitability by reducing costs.

A) Maintenance strategy
B) Defensive strategy
C) Innovation strategy
D) Maturity-stage strategy

Question 11

_________ represent a common foundation upon which new products (like line extensions) can be built upon.

A) Platforms
B) Families
C) Foundations
D) None of the above

Question 12

Reducing costs to focus on maximizing benefits or profits before the item is discontinued is the objective of which strategy:

A) Maintenance.
B) Harvest.
C) Growth.
D) Introduction.

Question 13

Product Proliferation occurs when:

A) a company offers too few variations of the same product.
B) a company offers too many variations of the same product.
C) a company offers different product lines.
D) a retailer refuses to see a company's products.

Question 14

The Product Life Cycle can be influenced by:

A) external factors.
B) internal factors.
C) Both A and B are correct.
D) None of the above are correct.