Lesson 2.2.1b

2.2.1b Product life cycle and extension strategies Quiz: Pearson Edexcel Business, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.2.1b, Product life cycle and extension strategies: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 7: Making marketing decisions, written with Revision Ninja.

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The 20 questions

  1. What is the final phase in a standard product life cycle?

    • Growth
    • Maturity
    • Decline
    • Introduction

  2. In which phase do sales usually rise most rapidly?

    • Growth
    • Maturity
    • Decline
    • Introduction

  3. In which phase is a product's market most saturated?

    • Maturity
    • Decline
    • Growth
    • Introduction

  4. What is the primary aim of using an extension strategy?

    • Halt production permanently
    • Eliminate all competitors
    • Increase launch costs
    • Prolong product life

  5. Which action is a classic product extension strategy?

    • Withdrawing the item
    • Increasing initial debt
    • Adding new flavours
    • Halting all advertising

  6. Which cost category is typically highest during the introduction phase?

    • Administration costs
    • Promotion costs
    • Liquidation costs
    • Distribution costs

  7. In which product life cycle phase are profits usually lowest?

    • Introduction
    • Saturation
    • Growth
    • Maturity

  8. What is a typical business response during the decline phase?

    • Raising retail prices
    • Increasing marketing budget
    • Expanding factory capacity
    • Cutting product costs

  9. A product's sales are 2,000 units in year one, 9,000 in year two and 12,000 in year three, then falling. Which phase is year three most likely in?

    • Maturity
    • Growth
    • Introduction
    • Decline

  10. A soft drink adds a sugar-free version to its range. Which strategy is this?

    • A merger
    • Product extension
    • Market exit
    • Tariff avoidance

  11. A brand relaunches an old product with new packaging and a lower price to win back sales. Which phase is it trying to revive?

    • Decline
    • Introduction
    • Exporting
    • Growth

  12. A games console's sales fall from 1 million to 200,000 per year over four years. Which phase is it in?

    • Decline
    • Growth
    • Introduction
    • Maturity

  13. What type of extension strategy involves lowering retail prices?

    • Quality-based strategy
    • Design-based strategy
    • Price-based strategy
    • Promotion-based strategy

  14. A product in its introduction phase sells 1,000 units a month at a £5 profit each. What is the monthly profit?

    • £50,000
    • £5,000
    • £500
    • £1,000

  15. Why might a firm launch a limited-edition design during maturity?

    • To increase costs
    • To liquidate stock
    • To extend product life
    • To halt production

  16. How should a firm respond to rising competition during growth?

    • Withdraw immediately
    • Lower quality standards
    • Invest in differentiation
    • Stop all promotion

  17. What is a major risk of using an extension strategy for a product?

    • Sales may still fall
    • Instant market monopoly
    • Guaranteed high profit
    • Immediate bankruptcy

  18. Which feature typically characterises the maturity phase?

    • Rapidly rising losses
    • Maximum promotional spend
    • Stable high sales
    • Zero competition

  19. A product's sales fall by 20% a year for three years from 10,000 units. What are sales after three years?

    • 5,120 units
    • 6,000 units
    • 2,000 units
    • 4,000 units

  20. When is the best time to plan a product extension strategy?

    • Before research stage
    • During maturity
    • During decline
    • During liquidation

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