Lesson 7.5.1

7.5.1 The product life cycle Quiz: OCR Business, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 7.5.1, The product life cycle: 20 multiple choice questions for the OCR Business (H431), Unit 7: Marketing, written with Revision Ninja.

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The 20 questions

  1. Which stage of the product life cycle involves research costs and zero sales revenue?

    • Maturity
    • Growth
    • Development
    • Introduction

  2. What stage of the product life cycle typically experiences heavy promotion and negative cash flow?

    • Introduction
    • Maturity
    • Decline
    • Saturation

  3. What typically happens to net cash flow during the growth stage of a product?

    • Remains negative
    • Reaches maximum peak
    • Falls to zero
    • Turns positive

  4. At which stage of the product life cycle do sales reach their maximum peak before declining?

    • Saturation
    • Introduction
    • Development
    • Growth

  5. What is the primary purpose of implementing an extension strategy for a product?

    • Increase research costs
    • Accelerate product decline
    • Prolong maturity stage
    • Shorten development time

  6. Re-branding a product to target a new market segment is an example of what strategy?

    • Boston matrix
    • Value analysis
    • Product withdrawal
    • Extension strategy

  7. Which extension strategy involves finding new target customers for an existing product?

    • Market repositioning
    • Value analysis
    • Product line extension
    • Cost reduction

  8. On a standard product life cycle diagram, what variable is plotted on the vertical axis?

    • Market share
    • Time
    • Sales revenue
    • Production cost

  9. What variable is plotted on the horizontal axis of a standard product life cycle diagram?

    • Unit cost
    • Time
    • Profit margin
    • Sales volume

  10. In which stage of the product life cycle is profit per unit normally at its highest?

    • Maturity
    • Introduction
    • Development
    • Decline

  11. A product in the introduction stage of the PLC usually corresponds to which Boston Matrix category?

    • Star
    • Question mark
    • Cash cow
    • Dog

  12. A high-market-share product in the maturity stage of the PLC is best classified as what?

    • Dog
    • Problem child
    • Question mark
    • Cash cow

  13. Why might relying solely on the product life cycle model be risky for a business manager?

    • Unpredictable stage length
    • Requires high debt
    • Excludes promotion costs
    • Ignores sales revenue

  14. Which stage of the product life cycle features rapid sales growth and increasing market share?

    • Development
    • Growth
    • Maturity
    • Decline

  15. When should a business ideally plan and introduce an extension strategy for a product?

    • After sales hit zero
    • At product launch
    • During market decline
    • Before decline begins

  16. Updating a chocolate bar's packaging to appeal to younger buyers is best described as what?

    • Extension strategy
    • Market liquidation
    • Primary research
    • Cost minimisation

  17. How does the product life cycle model help a business manage its product portfolio?

    • Forecasts future sales
    • Sets exact prices
    • Eliminates operational risk
    • Guarantees high profit

  18. Charging a high initial price to recover development costs rapidly is known as what strategy?

    • Price skimming
    • Predatory pricing
    • Penetration pricing
    • Cost-plus pricing

  19. Why is cash flow usually highest during the maturity stage of the product life cycle?

    • Rising promotion budgets
    • High development expenditure
    • High sales revenue
    • Zero manufacturing costs

  20. Adding new features to an existing smartphone model during maturity is an example of what?

    • Primary penetration
    • Product liquidation
    • Market exit
    • Product modification

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