ACCA Performance Management (F5) Certification Practice Exam

What are the stages of the product life cycle?

1. Pre-production, launch, maturity, decline

2. Launch, development, growth, maturity, decline

3. Production, growth, review, decline

4. Development, maturity, peak, decline

The correct answer is: Pre-production, launch, maturity, decline

The stages of the product life cycle typically encompass the various phases a product goes through from its introduction to its eventual decline in the market. The correct sequence outlines a clear trajectory that products generally follow. The first stage, pre-production, involves research and development, where ideas are generated and prototypes are tested. This sets the groundwork for the product's eventual introduction to the market. Following this stage is the launch phase, where the product is officially introduced to consumers. This includes marketing efforts and initial sales as the product begins to gain traction. The next stage, maturity, occurs when the product has reached peak market penetration and sales begin to stabilize. Here, competition often increases, leading to efforts in differentiation and marketing strategies to maintain market share. Finally, the decline stage signifies a drop in product sales due to changing consumer preferences, technological advancements, or market saturation. This framework is useful for businesses as it helps guide decisions related to production, marketing, and resource allocation throughout the life of the product. Understanding these stages allows companies to strategize effectively, manage risks, and maximize profitability as their products move through the life cycle. While other options present different configurations that may include terms relevant to product development and performance, they do not accurately capture the full cycle as recognized