product

Question 1

what are the three different kinds of consumer products

Answer 1

-convenience products - nessesities that are bought on a regular basis
-shopping products - more expensive bought less regularly e.g clothes
-speciality products - consumers view as unique
luxury

Question 2

what are the stages of the product life cycle

Answer 2

development- high costs no revenue

introduction - high costs for promotion little revenue

growth - high sales making most revenue

maturity - product saturated sales may begin to drop

decline - new better product have been released by competitiors and product begins to become obsolite

Question 3

what are the different catagories in the boston matrix

Answer 3

question marks - new products high growth potential with little market share

dogs - failed products low growth low market share

cash cows - older products in their maturity stage with low growth however have high market share and continue to make good money with little costs

stars - these are products with high growth and high market share in the growth stage - future cash cows

Question 4

give an example of an extension strategy that a firm could use in order to extend a products life time

Answer 4

the firm could update the product using product development