ADMS 1000 Lecture Notes - Lecture 6: Dominant Design, Product Differentiation
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The sales and profits of an individual product may not follow the life cycle pattern.
True |
False |
During the sales decline stage of the product life cycle, no firm can earn a profit.
True |
False |
During the introduction stage of the product life cycle:
none of the above. |
most products achieve intensive distribution. |
promotion is likely to be needed to increase primary demand. |
"me too" products quickly take market share away from the innovator. |
industry profits are at their highest. |
During the introduction stage, what would hinder acceptance of a new product?
consumers may not see the new product as offering a superior alternative to whatever they are currently using. |
risk in buying something for the first time. |
all of the above. |
the new product may not be compatible with the buyer's values. |
problems communicating or demonstrating the new product's benefits. |
During the market growth stage of the product life cycle:
industry sales grow slowly. |
industry profits fall, then rise. |
the market begins to fragment into sub-markets or segments. |
all of the above. |
the industry experiences the smallest profits |
|
persuasive promotion. |
pool of potential users is exhausted. |
aggressive competitors entering the markets. |
less efficient firms leaving the market. |
price cutting. |
Gerhard Company has seen most of its competitors drop out of its product market due to declining sales and profits. However Gerhard still has much demand for its products from a small group of loyal customers. In which stage of the product life cycle is this product market?
sales decline. |
market maturity. |
market growth. |
market development. |
market introduction. |
The length of a product's life cycle:
depends on the ease of entry to the market for competitors. |
may be as short as 90 days. |
may be as long as 100 years. |
varies widely across products. |
all of the above. |
Regarding product life cycles, a good marketing manager knows that:
all of the above. |
once a market goes into sales decline, oligopoly conditions set in. |
a company's marketing mix usually should be kept constant over the product life cycle. |
industry profits are increasing well after sales start to decline. |
entirely different target markets may be involved at different stages of the product life cycle. |
Generating "socially responsible" new product ideas:
reduces the long-term welfare of consumers. |
is done by all companies. |
is easy for new product planners. |
is unprofitable and should not be done. |
is promoted by consumer groups. |