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14-128.When reviewing the product life cycle model, it is important to remember that: A)although all products go through each stage of the life cycle, the time frame can vary considerably from one product to another. B)it is a theoretical model that may not be followed by all products. C)the maturity stage accounts for the fastest growth in sales. D)companies earn their largest profits in the introduction stage. Answer: BLG: 6/LL: 2Page: 389 Rationale: Not all products follow the life cycle, and particular brands may act differently. For example, while frozen foods as a generic class may go through the entire cycle, one brand may never get beyond the introduction stage.14-129.Once a good or service nears the end of its product life cycle, the firm recognizes that: LG: 6/LL: 2Page: 391 Rationale: Through creative marketing, a product can revert to a previous stage of the product life cycle. A good example of this is Arm & Hammer Baking Soda.14-130.Which stage of the product life cycle is characterized by rapidly rising sales, very high profit levels, and a growing number of competitors? A)growth B)maturity C)saturation D)decline Answer: ALG: 6/LL: 2Page: 391; figure 14.6 Rationale: Figure 14.6 shows that all of these factors tend to characterize a product in the growth stage of its product life cycle.14-131.30Nickels, McHugh & McHugh, Understanding Business, Eighth Edition
14-132.Which of the following is expected during the maturity stage of a product life cycle? 14-133.Which of the following is consistent with the introduction stage of the product life cycle?