Product life cycle

• What is the product life cycle?

  Stages a product goes through in its life
• What affects the lifespan of a product?

  Technological change, consumer demand, company policy
• How can technological change impact a product?

  It can replace a product with a new version
• What can cause changes in consumer demand for a product?

  Fashion trends, safety concerns, competition
• Why might a company decide to discontinue a product?

  To introduce a new product or strategy
• What are the four stages of a typical product life cycle?

  1. Introduction
  2. Growth
  3. Maturity
  4. Decline

  
• What happens during the introduction stage of a product life cycle?

  High costs and commercial viability assessment
• What characterizes the growth stage of a product life cycle?

  Sales increase and profits are realized

  
• What occurs during the maturity stage of a product life cycle?

  Sales begin to drop due to competition

  
• What happens in the decline stage of a product life cycle?

  Sales fall dramatically and product may be withdrawn

  
• Provide examples of products in each stage of the product life cycle.

  • Introduction: Flying Cars, Smart Glasses
  • Growth: Electric Cars, IoT Devices
  • Maturity: TV Cable Connection, Personal Computers
  • Decline: CD/DVD Players, Landline Phones

  
• What is planned obsolescence?

  Strategy to make products seem obsolete early
• How can companies create planned obsolescence?

  Fashion changes, withholding features, product durability
• Why might companies deny planned obsolescence practices?

  To avoid poor publicity and sustainability issues
• What is the balance companies must strike regarding product design?

  High sales and durable, value-for-money products
• How do companies justify style changes in products?

  Consumers desire new looks and feel-good factors
• What happens if a new product fails in the market?

  The company will lose money on the investment