Marketing 2.03 Test

Which of the following is a true statement about the maturity stage of the product life cycle:

Sales growth slows down

which of the following is a true statement about the introduction stage of the product life cycle:

Profits are usually nonexistent

Most of the products we use are in which stage of the product life cycle?

Maturity

Kevin is standing in line to purchase the latest version of his favorite smartphone. He loves getting the newest technology as soon as it's available. Kevin is known as a(n):

Early adopter

The product life cycle refers to the stages a product moves through from the time it enters the market until the time

It exits the market

Which of the following is a true statement about the growth stage of the product life cycle:

Competitors arrive on the scene

During the growth stage, costs are affected by

economies of scale

Which of the following is a true statement about the decline stage of the product life cycle:

The stage can be fast or slow

Which of the following is one of the main goals of promotion during the introduction stage:

Building awareness of the product

Which of the following marketing strategies is appropriate for the growth stage of the product life cycle:

Expanding the product line

Which of the following is a type of "product" that the product life cycle can apply to:

A brand

Which of the following is a true statement regarding promotion expenditures during the growth stage of the product life cycle:

They decrease as a percentage of sales revenue

A price-skimming strategy works well when introducing

electroning products

Which of the following stages of the product life cycle is the most difficult one for marketers:

Maturity

Which of the following marketing strategies is appropriate for the maturity stage of the product life cycle:

Offering incentives to distributors

Marketers may extend a product's life cycle by

finding new uses for it

During the decline stage, a company may choose to continue offering the product but cut out all promotional expenditures. This is a strategy known as:

harvesting

A software manufacturer may sell an entire "suite" of software programs for one price during the maturity stage. This is a marketing strategy known as:

bunding

Marketers may attempt to increase the number of a product's users by

selling the product in a foreign country

Which of the following marketing strategies is appropriate for the decline stage of the product life cycle:

selling the product online

The stages a product moves through from the time it enters the market until the time it exists the market

F. Product life cycle

The stage of the product life cycle in which many products fall

B. Introduction

The stage of the product life cycle in which the product quickly becomes accepted in the market

I. Growth

The phrase that refers to costs going down as a company makes more and more of a product

G. Economies of scale

A person who purchases a new product before most others do

D. Early adopter

The longest-lasting stage of the product life cycle

K. Maturity

The stage of the product life cycle in which profits begin to erode

A. Decline

A state in which the only chance for increased sales occurs with population growth or a shift in market share

H. Market saturation

A strategy that involves setting prices high to recover costs

E. Skimming

A strategy that involves setting prices low to achieve market acceptance

L. Penetration pricing

A strategy that involves selling a package of products together for one price

C. Bundling

A strategy that involves lowering a products's costs but continuing to sell it

J. Harvesting