Understanding the Product Life Cycle

What is the primary purpose of understanding the product life cycle in business?

• To predict economic trends

• To understand consumer behavior

• To decide when to increase advertising and reduce prices

• To determine the best time to launch a new product

Which stage of the product life cycle involves creating awareness and demand for a new product?

• Growth

• Maturity

• Introduction

• Decline

During which stage of the product life cycle do competitors typically enter the market?

• Introduction

• Growth

• Maturity

• Decline

What happens to a product's sales growth during the maturity stage?

• It slows down

• It declines sharply

• It accelerates rapidly

• It remains constant

Which of the following is a characteristic of the decline stage in the product life cycle?

• Increased production costs

• High consumer demand

• Emergence of new competitors

• Decreased profit margins

Which product is currently in the decline stage due to technological advancements?

• Smartphones

• AI products

• Typewriters

• Electric vehicles

What stage are electric vehicles currently experiencing in their product life cycle?

• Introduction

• Growth

• Decline

• Maturity

How can a company prolong the mature stage of its product life cycle?

• By increasing prices

• By understanding industry evolution

• By reducing product quality

• By ignoring consumer feedback

Why is it important to track changes among consumers during the product life cycle?

• To maintain a consistent marketing strategy

• To adapt to new consumer expectations

• To reduce production costs

• To eliminate competition

What role does innovative technology play in maintaining the mature stage of a product?

• It limits market expansion

• It helps reduce production costs

• It decreases consumer interest

• It differentiates the product from competitors