Question

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

What is the most important reason why industry sales level off in the market maturity stage of the product life cycle?

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.