Product Life Cycle

Question 1

what are the 5 stages of the Product Life Cycle

Answer 1

1 Research and Development
2 Introduction
3 Growth
4 Maturity
5 Decline

Question 2

What are the key objectives in the introduction stage

Answer 2

Establish Market and Build primary demands
Create customer awareness via promotions
Identify and target likely “innovators”

Question 3

General Characteristics of “innovators”

Answer 3

More formal education (ability to grasp technologies)

Higher socioeconomic status (ability to absorb possible loss from innovation failure)

More exposure to mass media channels (ability to learn about new innovations)

More exposure to interpersonal channels (Learn from peers)

More “change agent” contact (exposure to thought leaders”

More social participation (exposure to new innovations within social networks)

More cosmopolitan (exposure and understanding of world issues)

More venture some and risk taking (willing to accept and cope with risk)

Question 4

• What are the five factors impacting the innovations rate of adoption?

Answer 4

1. RELATIVE ADVANTAGE
2. COMPATIBILITY
3. COMPLEXITY
4. DIVISIBILITY AND TRIALABILITY
5. COMMUNICABILITY

Question 5

• Relative advantage means:

Answer 5

How readily do adopters see the innovations value over existing products/technologies?

Question 6

• Compatibility means:

Answer 6

How easily can the innovation be adopted within exisiting infrastructures/lifestyles?

Question 7

• Complexity means:

Answer 7

How easy is it to understand how to use it and recognize its value?

Question 8

• Divisibility and Trialability means

Answer 8

How easy is it to test just the innovation on a limited scale?

Question 9

• Communicability

Answer 9

How easily can the innovation be communicated to others?