Question 1

The product life cycle is divided into four stages of equal length.

Accepted Answer

The product life cycle is not always divided into four stages of equal length. The length of each stage can vary depending on the product and industry. Some products may have longer introduction stages, while others may have longer maturity stages.

Question 2

In the introduction stage of the product life cycle there is typically minimal competition.

Accepted Answer

During the introduction stage of the product life cycle, a new product is being launched, so there is minimal competition as the market is not yet saturated with similar products.

Question 3

Once a product has reached its maturity stage, it often needs an injection of newness to focus the market on the product and to provide a competitive advantage.This strategy is called repositioning.

Accepted Answer

Repositioning involves changing the perception of a product in the market in order to regain its competitive advantage. This often involves injecting newness or a fresh perspective to the product.

Question 4

Product innovation is a priority in the maturity stage of the product life cycle.

Accepted Answer

In the maturity stage of the product life cycle, the demand for the product slows down, and competition increases, making product innovation a priority to maintain or regain market share.

Question 5

Some children's toys enjoy a period of rapid growth and an equally rapid decline.These are an example of fad products.

Accepted Answer

Fad products are products that enjoy a sudden surge in popularity followed by a quick decline in interest. Children's toys are often subject to fads and can experience a rapid rise and fall in sales.

Question 6

The maturity stage of a product life cycle is characterized by a slowdown of growth in both sales and profit areas.

Accepted Answer

The maturity stage of a product life cycle is when the product reaches its peak of sales and profit, after which growth rate slows down.

Question 7

A product enters the decline stage when products become obsolete due to technological innovation or changes in consumer needs.

Accepted Answer

The decline stage in the product life cycle occurs when a product becomes obsolete due to technological innovation or changes in consumer needs, resulting in a decline in sales and eventual discontinuation of the product.

Question 8

Radical innovations involve the introduction of a product that is entirely new to the market.

Accepted Answer

Radical innovations are characterized by the introduction of a completely new product or technology to the market. This is in contrast to incremental innovations, which involve improvements or modifications to existing products or technologies.

Question 9

A Nokia cellphone is an example of a high-learning product because it requires educating consumers about its use and benefits.

Accepted Answer

Nokia cellphones, especially their classic models, are generally considered low-learning products because they are designed to be user-friendly and intuitive, requiring minimal education for consumers to understand their use and benefits.

Question 10

The product life cycle for a fad product is cyclical.

Accepted Answer

The product life cycle for a fad product typically follows a steep rise in popularity, a peak, and then a rapid decline, rather than a cyclical pattern.

Question 11

In the product life cycle, harvesting occurs when a product is discontinued.

Accepted Answer

Harvesting occurs in the late stage of a product's life cycle where a company reduces investment in a product to extract maximum profits with minimal expenses, not necessarily discontinuing it.

Question 12

A low-learning product is one where there is an extended introductory period due to the significant efforts required to educate customers.

Accepted Answer

A low-learning product is one that requires little customer education and effort before it can be used; the introductory period is typically short because customers can quickly understand and adopt the product.

Question 13

In the growth stage, most marketers focus on product differentiation.

Accepted Answer

In the growth stage, competition increases and companies focus on differentiating their products from competitors in order to maintain their market share and continue growing.

Question 14

Fashion products have a short product life cycle, going from introduction to decline, only to resurface a few years later.

Accepted Answer

This is true. Fashion trends tend to change quickly and products become outdated or less popular after a short period of time. However, some fashion products, such as classic styles, may resurface or become trendy again after a few years.

Question 15

Continuous innovations refer to new products that require new learning or behavior by consumers.

Accepted Answer

Continuous innovations involve minor improvements or simple adjustments to existing products, requiring no new learning by consumers.

Question 16

Access to distribution with big box retailers is a typical sign of products in the growth stage.

Accepted Answer

The answer of Access to distribution with big box retailers...

Question 17

Marketers at Polka Ltd.are using the price skimming strategy.This means that they are using low prices to enter the market.

Accepted Answer

The statement contradicts itself. Price skimming is a strategy where a company sets a high price for a new product and then gradually lowers the price over time. It is not associated with using low prices to enter the market.

Question 18

In the maturity stage of the product life cycle, many products will have falling profits.

Accepted Answer

In the maturity stage, sales growth slows down and eventually stabilizes. With intense competition and market saturation, companies may face declining profits due to reduced demand, price cutting, or higher marketing and promotion costs.

Question 19

Marketers for Stoic televisions use promotional tactics to attract consumers and boost purchases.The product is most likely in its growth stage.

Accepted Answer

The answer of Marketers for Stoic televisions use promotional tactics...

Question 20

Cheerios added a new flavour to its already established Cheerios product line.This is an example of greenwashing.

Accepted Answer

Greenwashing refers to the act of a company making misleading or exaggerated claims about the environmental benefits of their products or practices. The addition of a new flavour to a product line does not make any such claim about the product being environmentally friendly, and therefore it is not an example of greenwashing.

Quiz 8: New Product Development