Lesson 2.2.1b

2.2.1b Product life cycle and extension strategies Quiz: Pearson Edexcel Business, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.2.1b, Product life cycle and extension strategies: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 7: Making marketing decisions, written with Revision Ninja.

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The 20 questions

  1. The phases of the product life cycle are:

    • introduction, growth, maturity and decline
    • import, export, tariff and quota
    • design, testing, launch and recall
    • start-up, expansion, merger and takeover

  2. In which phase do sales usually rise most rapidly?

    • Growth
    • Maturity
    • Decline
    • Introduction

  3. In which phase is a product's market most saturated?

    • Maturity
    • Decline
    • Growth
    • Introduction

  4. Extension strategies are used to:

    • prolong a product's life and delay decline
    • end all sales of a product immediately
    • shorten the life cycle deliberately
    • move production to a new country

  5. Which is an example of an extension strategy?

    • Launching a new flavour of an existing product
    • Closing the factory that makes the product to save money
    • Withdrawing a product from all of the markets it is sold in
    • Selling a product at its original launch price for ever

  6. During the introduction phase, a business is most likely to:

    • reduce its product range to a single line
    • stop production immediately
    • spend heavily on promotion to create awareness
    • cut all promotion to save money

  7. In which phase are profits usually lowest because of launch costs?

    • Growth, when sales are rising quickly each year
    • Decline, when sales fall steadily towards zero
    • Introduction
    • Maturity, when most buyers already own the product

  8. During decline, a business is most likely to:

    • increase production sharply
    • consider withdrawing the product or cutting its costs
    • launch an expensive national advertising campaign
    • enter new export markets with no change to the product

  9. A product's sales are 2,000 units in year one, 9,000 in year two and 12,000 in year three, then falling. Which phase is year three most likely in?

    • Maturity
    • Growth
    • Introduction
    • Decline

  10. A soft drink adds a sugar-free version to its range. Which strategy is this?

    • A merger
    • Product extension
    • Market exit
    • Tariff avoidance

  11. A brand relaunches an old product with new packaging and a lower price to win back sales. Which phase is it trying to revive?

    • Decline
    • Introduction
    • Exporting
    • Growth

  12. A games console's sales fall from 1 million to 200,000 per year over four years. Which phase is it in?

    • Decline
    • Growth
    • Introduction
    • Maturity

  13. A business reduces the price of a mature product to attract buyers from rivals. Which strategy is this?

    • A price-based extension strategy
    • An import ban on goods from a particular country
    • A merger with a rival firm in the same sector
    • A takeover of a rival business by share purchase

  14. A product in its introduction phase sells 1,000 units a month at a £5 profit each. What is the monthly profit?

    • £50,000
    • £5,000
    • £500
    • £1,000

  15. A brand adds a limited-edition design each year to keep its product fresh. What purpose does this serve?

    • To restart the introduction phase from zero
    • To extend the product's life during maturity
    • To prevent any competition in the market
    • To avoid all promotion of the product

  16. A product in its growth phase attracts new competitors. What is the most likely business response?

    • Invest in differentiation and promotion to keep share
    • Withdraw the product from the market at once to cut losses
    • Lower quality to match the lower prices charged by rivals
    • Stop all promotion to save costs during the growth phase

  17. Why might extending a product's life be risky?

    • Extension always doubles sales of the product every single year
    • It avoids all of the production costs the firm would otherwise pay
    • Customers may tire of minor changes and sales still fall
    • It removes all competition from the market the firm serves

  18. Which combination best describes a product in maturity?

    • Rapid sales growth with no competition from other firms
    • Stable sales, strong competition and possibly price cuts
    • Falling sales with no promotion at all for the product
    • Zero sales with very high investment in the product line

  19. A product's sales fall by 20% a year for three years from 10,000 units. What are sales after three years?

    • 5,120 units
    • 6,000 units
    • 2,000 units
    • 4,000 units

  20. Which decision best reflects product life cycle analysis?

    • Keeping one design forever regardless of sales
    • Ignoring competitors during the growth phase
    • Launching nothing new until sales have fallen to zero
    • Timing a new variant before the existing product reaches decline

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