Chapter 10: T/F Mini Quiz (Product Life Cycle)
A seller's profits peak in the maturity stage of a product's life cycle.
False
Distribution outlets become more difficult to secure during the growth stage of a product's life cycle because of aggressive competition.
False
During the growth stage, promotion costs rise as a percentage of total sales.
False
Advertising used in the decline stage may prolong the life of the product.
True
Changing the product's quality is a distinct alternative in the maturity stage of the product life cycle.
True
Communicating product benefits to consumers is very important in the introduction stage.
True
Many products are in the maturity stage of the product life cycle.
True
Many products never get beyond the introduction stage.
True
Price cuts are typical in a product's growth stage.
True
Profits decline in the maturity stage, largely because of increased competition.
True
Promotion decreases in importance during a product's decline stage.
True
Sometimes new marketing channels open up in the decline stage.
True