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