Lesson 1.3.5a
1.3.5a Product life cycle and extension strategies Quiz: Pearson Edexcel Business, Unit 1
20 questions
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Lesson 1.3.5a, Product life cycle and extension strategies: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 1: Marketing and people, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
Which sequence correctly lists the four main stages of the product life cycle?
- Growth, maturity, decline, launch
- Introduction, growth, maturity, decline
- Introduction, decline, growth, maturity
- Launch, saturation, growth, exit
-
In which stage of the product life cycle are sales typically rising fastest?
- Decline
- Growth
- Maturity
- Introduction
-
In which stage is competition typically most intense?
- Introduction
- Growth
- Maturity
- Development
-
Why are profits often negative during the introduction stage of a product?
- Declining market demand
- Low selling prices
- High tax rates
- High launch costs
-
Which action is an example of a product-based extension strategy?
- Adding new features
- Offering price discounts
- Entering new markets
- Launching TV adverts
-
Which action is an example of a promotional extension strategy?
- Lowering unit costs
- Changing product packaging
- Repositioning brand quality
- Running new campaigns
-
Updating packaging and launching a sugar-free version of a product is which type of strategy?
- Penetration pricing
- Market skimming
- Promotional extension
- Product extension
-
Which stage of the product life cycle is most likely to call for a decision on whether to withdraw a product?
- Decline
- Growth
- Introduction
- Maturity
-
Why do firms invest heavily in promotion during the introduction stage of a product?
- To deter competitors
- To build awareness
- To cut costs
- To maximise margins
-
Which pricing strategy is most commonly used during the maturity stage of a product?
- Competitive pricing
- Cost-plus pricing
- Loss leader pricing
- Price skimming
-
What typically happens to sales volume during the maturity stage of a product?
- Rapidly increases
- Peaks then plateaus
- Fluctuates unpredictably
- Falls towards zero
-
What is a key limitation of using an extension strategy for a product in decline?
- Only delays decline
- Immediately increases costs
- Guarantees permanent growth
- Reduces customer awareness
-
Setting a high initial price alongside heavy promotion during product launch is known as what?
- Cost-plus pricing
- Penetration pricing
- Price skimming
- Dynamic pricing
-
What is the primary reason businesses monitor the product life cycle of their goods?
- To reduce turnover
- To calculate tax
- To plan marketing
- To automate output
-
Which factor is most likely to shorten the overall life cycle of a consumer product?
- Stable consumer tastes
- Rapid technological change
- Decreasing distribution costs
- Rising profit margins
-
At which stage of the product life cycle do profits typically reach their highest level?
- Decline
- Introduction
- Growth
- Maturity
-
Which term describes phasing out a product to extract maximum remaining profit?
- Harvesting
- Divesting
- Skimming
- Penetration
-
Which method is used to extend a product's life cycle before sales decline?
- Extension strategy
- Price skimming
- Product withdrawal
- Market penetration
-
Which feature characterises the maturity stage of a product life cycle?
- Rapid sales growth
- High initial costs
- Peak sales volume
- Zero market share
-
Why would a firm choose to withdraw a product in its decline stage?
- Attract new buyers
- Increase market share
- Stop ongoing losses
- Build brand loyalty
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