Product Life Cycle Flashcards
1
Q
First stage of Product Life Cycle
A
Development
2
Q
Second stage of Product Life Cycle
A
Introduction
3
Q
Third stage of Product Life Cycle
A
Growth
4
Q
Fourth stage of Product Life Cycle
A
Maturity
5
Q
Fifth stage of Product Life Cycle
A
Decline
6
Q
What is x-axis variable in Product Life Cycle model?
A
Time
7
Q
What is y-axis variable in Product Life Cycle model?
A
Sales & Cash flow
8
Q
List 3 key points about Development stage. (3)
A
- Often complex & time-consuming
- Capital intensive (absorbs significant resources)
- Cost of development often rises as product approaches launch
9
Q
List 3 key points about Introduction stage. (3)
A
- New product launched to market
- Low level of sales is likely
- Low capacity utilisation & high unit costs
