Paper 1

1. Which of the following is a true statement about the launch stage of the
product life cycle?

A. Sales of the product are low

B. Costs are low
C. Sales and profits grow
D. Sales and profits drop

1 mark
2. In the product life cycle stages, the stage in which sales and profits
decrease is called

A. Launch. C. maturity
B. Growth. D. decline

1 mark
3. Which of the following is a true statement about the growth stage of the
product life cycle?

A. Little competition
B. Many competitors compete for customers
C. Competitors introduce competing products
D. The public abandons the product

1 mark
4. Which the of the following is a true statement about the maturing stage of
the product life cycle?

A. Profit increase
B. Sales growth slows down
C. Competition becomes less intense
D. An advanced technology replaces the product.
1 mark
Paper 2
5. Outline how and when a decline occurs. 2 marks
…………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………

6. Outline how would the product life cycle be affected with the absence of
maturity?
2 marks
…………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………

7. Outline a technological obsolescence. 2 marks

…………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………

8. Explain how the style (fashion) obsolescence affects the products growth.
3 marks
…………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
………………………………
 9. Explain the life cycle of an existing product
3 marks
…………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
………………………………

10. State one advantage and one disadvantage of a company introducing new
generations of a product.
2 marks
…………………………………………………………………………………………………………………….
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………

11.Draw the graph of the product life cycle and label its variables.
2 marks