product

Question 1

stages of the product life cycle

Answer 1

1. development
   2.introduction
   3.growth
   4.maturity
   saturation
   5.declin

Question 2

pricing strategy at introduction

Answer 2

PENETRATION as it helps gain a customer base by prices being low attracting customers in and then the higher the sales grow the higher the prices will gradually rise increasing sales and profits

Question 3

pricing strategy at growth

Answer 3

SKIMMING as its new customers will pay high prices due to business being established

Question 4

pricing strategy at maturity

Answer 4

COMPETITIVE BASED as it will attract customers away from other competitors businesses

Question 5

pricing strategy at decline

Answer 5

COMPETITIVE BASED to beat competitors and stay on the market

Question 6

5 extension strategies

Answer 6

price reductions
increase advertising by media or celebs
change packaging new labels logo colour etc
increase promotion celebs or sales
modify products make it appear different but yet by the same

Question 7

product legislations:
consumers right act 2015
4 points

Answer 7

-satisfactory quality: goods must be properly and safely manufactured and should not be damaged faulty
-fit for purpose: must be fit for purpose for which they were supplied or made known to the consumer eg waterproof coat must be waterproof
-as described:goods must match any description given to consumers
-supplying a service: must preform service to a reasonable care at a reasonable price

Question 8

product legislations:
consumer protection act 1987
4 points

Answer 8

-all goods must be safe
-unsafe goods can be confiscated
-consumer is expected to use product responsibly therefore should be given instructions and warnings
-anyone injured by a faulty or defective product consumer is entitled to sue producers or manufacturers