Cam Nat Enterprise: 3.1-3: Product Lifecycle and Differentiation

Which of the following is the correct order of the stages in the product lifecycle?

• Introduction, Growth, Maturity, Decline

• Growth, Introduction, Decline, Maturity

• Maturity, Introduction, Growth, Decline

• Decline, Growth, Maturity, Introduction

What is the main purpose of extension strategies in the product lifecycle?

• To increase the price of the product

• To extend the maturity stage and delay decline

• To reduce production costs

• To introduce a new product

Which of the following is NOT a method of product differentiation?

• Changing the packaging

• Lowering the price only

• Improving product features

• Creating a unique brand image

What does branding help a product to achieve?

• Increase its weight

• Stand out from competitors

• Reduce its shelf life

• Lower its production cost

Which stage of the product lifecycle is usually associated with the highest level of competition?

• Introduction

• Growth

• Maturity

• Decline

Adding value to a product can be achieved by:

• Reducing the quality

• Improving customer service

• Increasing the price without changes

• Reducing advertising

Which of the following is an example of entering a new market?

• Selling the same product in a different country

• Changing the product’s colour

• Lowering the price in the current market

• Reducing the product size

What is the main characteristic of the introduction stage in the product lifecycle?

• High sales and profits

• Low sales and high promotion costs

• Declining sales

• Market saturation

Which of the following is a common extension strategy?

• Discontinuing the product

• Rebranding the product

• Ignoring customer feedback

• Reducing product quality

Product differentiation is important because it:

• Makes all products look the same

• Helps a business compete more effectively

• Reduces the need for advertising

• Increases production costs only