Understanding Product Life Cycle Theory

What are the four main stages of the Product Life Cycle?

• Start, Rise, Peak, Fall

• Release, Adoption, Stabilization, Exit

• Introduction, Growth, Maturity, Decline

• Launch, Expansion, Saturation, Withdrawal

In which stage does a product first get introduced to the market?

• Decline stage

• Growth stage

• Maturity stage

• Introduction stage

Give an example of a product that was introduced in the U.S. during the Introduction stage.

• Google Pixel

• Nokia 3310

• Apple iPhone

• Samsung Galaxy

During which stage does a product start being exported to other developed countries?

• Internationalization stage

• Development stage

• Launch stage

• Growth stage

What is a real-world example of a product that experienced growth in the market?

• Electric vehicles (EVs), particularly Tesla.

• Home appliances, such as refrigerators.

• Traditional gasoline cars, like Ford.

• Smartphones, particularly Apple.

In the Maturity stage, where does production typically shift to?

• Emphasis on rapid market expansion.

• Efficiency and cost reduction in production.

• Focus on product diversification.

• Increase in manual labor production.

Why do developed countries start importing products during the Maturity stage?

• Developed countries start importing products during the Maturity stage to reduce costs, increase variety, and respond to competitive pressures.

• To eliminate competition from local manufacturers

• To comply with international trade agreements

• To increase domestic production capacity

What happens to a product during the Decline stage of the Product Life Cycle?

• The product is immediately replaced by a new version.

• Sales and profits increase significantly.

• Sales and profits decrease, and the product may be discontinued or revitalized.

• The product becomes a market leader.

Can you name a product that has gone through the Decline stage?

• DVD player

• Floppy disk

• CD player

• VCR

How does the Product Life Cycle Theory relate to international trade?

• The Product Life Cycle Theory only applies to domestic markets.

• The theory suggests that all products are exported at the same time.

• International trade is unaffected by product life stages.

• The Product Life Cycle Theory explains how products are traded internationally based on their life stages, affecting export and import dynamics.