PLC Worksheet
Student: ___________________________________________________________________________
1.
Promotional expenses at the maturity stage of the product life cycle are often directed towards:
A. creating demand for the product class.
B. reminding the consumer to use the product.
C. creating primary demand.
D. gaining new distributors.
E. eliminating distribution channels.
2.
To handle products in the decline stage of the product life cycle, companies often use either:
A. diversification or harvesting.
B. harvesting or contracting.
C. deletion or harvesting.
D. diversification or harvesting.
E. building or contracting.
3.
During the introduction stage of the product life cycle, __________ may be used used. This pricing
strategy charges a high price to recoup the costs of product development.
A. penetration pricing
B. cost-plus pricing
C. ROI pricing.
D. market-oriented pricing
E. skimming pricing
4.
All of the following occur during the decline stage of the product life cycle EXCEPT:
A. sales decrease substantially.
B. the firm chooses the wrong marketing strategy, which results in an inappropriate marketing program
for the target market.
C. the uncontrollable environment changes.
D. promotional support for the product becomes minimal.
E. the number of competitors is reduced.
5.
Generally, the average length of time it takes for a product category to move from the introduction stage
of its product life cycle to the decline stage is:
A. 18 months.
B. 5-10 years.
C. 20 years.
D. 30 years.
E. unpredictable.
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6.
The stage of the product life cycle when a product is first introduced to its intended target market is
called the __________ stage.
A. growth
B. commercialization
C. launch
D. introduction
E. awareness-trial
7.
At which stage in the product life cycle do industry profits usually peak?
A. introduction
B. growth
C. maturity
D. decline
E. commercialization
8.
__________ occurs when a company retains a product but reduces marketing costs.
A. Skimming
B. Harvesting
C. Profiting
D. Deletion
E. Divesting
9.
Promotional expenditures at the introduction stage of the product life cycle are spent on:
A. contests and sweepstakes.
B. creating selective demand.
C. creating primary demand.
D. personal endorsements.
E. maintaining brand loyalty.
10. A product in the introduction stage of the product life cycle should have which of the following
marketing objectives?
A. to gain awareness and stimulate trial
B. to stress differentiation
C. to maintain brand loyalty
D. to gain as much distribution as possible
E. to reveal a marketing niche
11. Which stage in the product life cycle is characterized by a slowing of industry sales?
A. introduction
B. growth
C. maturity
D. decline
E. comparability
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12. As competitors introduce their own products, and the product progresses along its life cycle, company
attention is focused on creating __________ demand, or demand for a specific brand.
A. selective
B. primary
C. derived
D. generic
E. secondary
13. Recently, there was a backlash against artificial colors in food and other consumer products. As a result,
a lot of companies issued products that were clear. One example was Crystal Pepsi. The product never
really found a market and was __________, or dropped from the Pepsi product line soon after its
introduction.
A. diversified
B. aggregated
C. segmented
D. deleted
E. harvested
14. During the introduction stage of the product life cycle, promotional expenditures are made to stimulate
consumer desire for an entire product class rather than for a specific brand. The consumer desire that is
stimulated is referred to as __________ demand.
A. selective
B. primary
C. derived
D. generic
E. secondary
15. Sales exhibit a steady downward trend throughout which stage of the product life cycle?
A. introduction
B. growth
C. maturity
D. decay
E. decline
16. The music industry has changed dramatically over the years. In the 1970s, consumers purchased 8-track
tapes. In the 1980s, cassette tapes caused the decline of 8-track tapes. In the 2000s, compact discs have
become very popular and are purchased by music lovers of every age and background. Yet CD sales have
leveled off due to MP3 technology and small music players such as Apple's iPod, which download songs
from the internet. Sales growth for the iPod and other MP3 players is exponential. Based upon this
information, you can correctly conclude CDs are in the __________stage, and MP3 players are in the
__________ stage of the product life cycle:
A. decline; growth
B. decline; introduction
C. maturity; growth
D. decline; maturity
E. maturity; introduction
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17. Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of
competitors?
A. introduction
B. growth
C. maturity
D. decline
E. profit
18. A concept that describes the stages a new product goes through in the marketplace--introduction, growth,
maturity, and decline-- is called:
A. the retail life cycle.
B. the product life cycle.
C. the marketing mix.
D. the product growth cycle.
E. product commercialization.
19. During the introduction stage of the product life cycle, the strategy that discourages competitive entry by
charging a low price is referred to as:
A. penetration pricing.
B. cost-plus pricing.
C. ROI pricing.
D. market-oriented pricing.
E. skimming pricing.
20. Which of the following is a NOT a type of product life cycle?
A. revolutionary
B. low learning
C. fashion
D. high learning
E. fad
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