Lesson 2.3.5

2.3.5 Product Lifecycle & Extension Strategies Quiz: NCFE Business & Enterprise, Unit 2

20 questions · by Revision Ninja

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This free Product Lifecycle & Extension Strategies quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 2: Marketing. It covers lesson 2.3.5, Product Lifecycle & Extension Strategies, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. A smart speaker has been on sale for a year. Sales are climbing fast and more shops are stocking it. Which stage is it in?

    • Growth
    • Introduction
    • Decline
    • Maturity
  2. A chocolate bar has been on sale for many years. What is usually happening at the maturity stage of its lifecycle?

    • Sales have peaked and are now fairly flat
    • Sales are rising quickly as word of mouth spreads
    • Sales are low while the brand is unknown
    • Sales are falling as buyers switch away
  3. Sales of a DVD player are falling year on year as shoppers switch to streaming. Which stage of the lifecycle is this?

    • Maturity
    • Decline
    • Introduction
    • Growth
  4. Why might a business use an extension strategy on a product whose demand is fading?

    • To recover the cost of developing it
    • To clear old stock before withdrawal
    • To lengthen its life and revive sales
    • To test how buyers react to a design
  5. Which of these extension strategies works through the product element of the marketing mix?

    • Cutting the selling price by 20%
    • Offering a two-for-one deal in stores
    • Adding a new flavour to the range
    • Selling it through a new online shop
  6. A UK biscuit maker begins selling its biscuits in Germany to revive falling sales. Which extension strategy is this?

    • Changing the packaging
    • Lowering the selling price
    • Adding a new product feature
    • Entering a new market
  7. Sales of a new games console are low and the firm is spending heavily on advertising. Which stage of the lifecycle is this?

    • Introduction
    • Maturity
    • Growth
    • Decline
  8. On a product lifecycle diagram, what is normally measured on the vertical axis?

    • The number of rivals
    • The price charged
    • The profit made
    • The level of sales
  9. Why does a business often make a loss during the introduction stage of a product?

    • Sales are low but launch costs are high
    • Demand is high but stocks keep running out
    • Rivals have already copied the product
    • The product is being withdrawn from sale
  10. Extra taxes on diesel cars have made their sales fall sharply. What is the likely effect on the diesel car lifecycle?

    • It repeats the introduction stage
    • It returns them to the growth stage
    • It brings on the decline stage sooner
    • It lengthens the maturity stage
  11. What does the product life cycle model describe?

    • The stages a product passes through from launch to decline.
    • The steps a product goes through as it is designed and made.
    • The length of time a product can be used before it wears out.
    • The route a product takes from the factory to the consumer.
  12. Which situation is typical of the introduction stage?

    • Sales are low and promotion costs are high.
    • Sales fall and the product may be withdrawn.
    • Sales rise quickly as more retailers stock it.
    • Sales are at their peak and rivals copy it.
  13. What usually happens in the growth stage of the life cycle?

    • Sales are tiny and heavy launch advertising is needed.
    • Sales slide as newer rivals take over most of the market.
    • Sales climb quickly and the product starts to make a profit.
    • Sales level off as most likely buyers already have one.
  14. Which action is most typical of a business in the maturity stage?

    • Cutting the price hard to clear the last of the stock.
    • Adding new outlets fast to keep up with rising demand.
    • Spending heavily to make the first customers aware of it.
    • Defending market share with offers and loyalty deals.
  15. Why do sales usually fall in the decline stage?

    • Costs have risen faster than the price it sells for.
    • The market is saturated, so growth has levelled off.
    • Tastes have moved on and better rivals are available.
    • Too few customers have heard of it since its launch.
  16. What is the purpose of an extension strategy?

    • To spread risk by selling a wider range of goods.
    • To launch a brand new product into an untested market.
    • To keep sales going and delay a product's decline.
    • To set a high price at launch and lower it later.
  17. Sales of a fizzy drink are slipping. Which move is an extension strategy?

    • Launching a sugar-free version in a new can design.
    • Cutting production to match the lower level of demand.
    • Withdrawing the drink and replacing it with a new brand.
    • Raising the price to protect the profit made per can.
  18. How can moving into new overseas markets extend a life cycle?

    • It cuts the average unit cost by spreading fixed costs.
    • It spreads risk so a downturn at home hurts sales less.
    • It lets the firm sell off unsold stock at a discount.
    • It finds fresh customers who have not bought the product.
  19. Which extension strategy works by changing the product itself?

    • Offering a discount for buying three at a time.
    • Adding a new flavour and restyling the packaging.
    • Stocking it in petrol stations and corner shops.
    • Running a TV advert with a well-known sports star.
  20. Why might a firm cut the price of a product that is in decline?

    • Lower prices tempt bargain hunters and shift old stock.
    • It rewards loyal buyers who have bought it for years.
    • It builds a luxury image that attracts wealthy buyers.
    • Selling more units at a lower price raises the profit made on each one.