A. Profits remain stable at different stages of product life cycle
B. Products have an unlimited life
C. Product sales pass through distinct stages, each posing different challenges, opportunites and problems to the seller
D. Products require different marketing, financial, manufacturing, purchasing and human resource strategies in each of the life cycle stages
E. Products have a limited life
Choose the most appropriate answer from the option given below:
Product Life Cycle Assumptions Explained
The Product Life Cycle (PLC) concept hinges on specific assumptions about how products behave in the market over time. Understanding these is crucial for strategic decision-making.
Core Assumptions Analysis
The key assumptions underlying the PLC concept are:
- Assumption C: Product sales progress through distinct stages (e.g., introduction, growth, maturity, decline). Each stage presents unique challenges, opportunities, and problems for sellers.
- Assumption D: Different stages necessitate tailored strategies. Marketing, financial, manufacturing, purchasing, and HR strategies must adapt to the specific phase of the product's life cycle.
- Assumption E: Products have a finite lifespan. They do not last forever but eventually decline and may exit the market.
Why Other Options Are Incorrect
- Assumption A (Profits remain stable): This is incorrect. Profits typically vary significantly across PLC stages, often being low initially, peaking, and then declining.
- Assumption B (Products have unlimited life): This contradicts Assumption E and the fundamental idea of a "cycle," which implies a limited duration.
Conclusion
Therefore, assumptions C, D, and E form the basis of the Product Life Cycle model.
Important Questions from Product Life Cycle
Technical feasibility analysis will include which of the following?
A. Crucial technical specifications with respect to the design and product safety
B. Engineering requirements
C. Product development
D. Product testing
E. Plant location
Choose the correct answer from the options given below:
Out of the following, which are the CORRECT forms of Product Life Cycle:
A. Bell-shaped PLC
B. Scalloped PLC
C. Cycle-Recycle PLC
D. Growth-Slump PLC
Choose the correct answer from the options given below:
The product hierarchy stretches from basic needs to particular items in some sequence. Identify the CORRECT sequence or levels of the product hierarchy
A. Product type
B. Product family
C. Product class
D. Need family
E. Product line
Choose the correct answer from the options given below
Which of the following statements characterise the growth phase of product life-cycle?
(A) Build intensive distribution
(B) Maximize profit while defending market share
(C) Build awareness and interest in the mass market
(D) Diversify brand and items models
(E) Price to penetrate market
Choose the most appropriate answer from the options given below:
Following are two statements with regard to product life cycle (PLC) :
Statement I : Product sales pass through distinct stages of PLC, each posing different challenges, opportunities and problems to the seller.
Statement II : A company's positioning and differentiation strategy must change as its product, market and competitors change over the product life cycle.
Which of the following options is correct ?
