Product Life Cycle Quiz - CBSE Class 12 Business Studies
Free practice quiz: Product Life Cycle (CBSE Class 12 Business Studies). 20 multiple-choice questions with answers and explanations. Play online, no sign-up needed.
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What is the first stage of the Product Life Cycle?
- Introduction
- Growth
- Maturity
- Decline
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Answer: A. Introduction
The Product Life Cycle starts with the Introduction stage, where a product is introduced to the market.
Which factor primarily determines the length of each stage in the Product Life Cycle?
- Market competition
- Consumer trends
- Advertising expenditure
- All of the above
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Answer: D. All of the above
The length of each stage can be influenced by multiple factors including competition, consumer preferences, and marketing efforts.
What is one major risk associated with the maturity stage of the product life cycle?
- Product innovation
- Market saturation
- High initial costs
- Lack of consumer interest
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Answer: B. Market saturation
Market saturation occurs when most potential buyers have purchased the product, leading to reduced sales growth.
Which phase of the Product Life Cycle is most often associated with high levels of advertising?
- Introduction
- Growth
- Maturity
- Decline
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Answer: A. Introduction
The Introduction stage typically requires high advertising to build consumer awareness and interest.
What happens to product prices during the maturity phase, generally?
- Prices increase
- Prices stabilize
- Prices decrease
- Prices fluctuate wildly
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Answer: B. Prices stabilize
During the maturity phase, prices usually stabilize due to higher competition and market saturation.