Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What are the stages of the Product Life Cycle?

1. Introduction, Growth, Maturity, Decline, Senility

2. Launch, Growth, Stabilization, Decline, Obsolescence

3. Introduction, Development, Maturity, Saturation, Decline

4. Launch, Expansion, Peak, Decline, Recovery

The correct answer is: Introduction, Growth, Maturity, Decline, Senility

The stages of the Product Life Cycle are recognized as a sequence that products undergo from their conception to their exit from the market. The stages typically identified include Introduction, Growth, Maturity, and Decline, often followed by a phase that some refer to as Senility or a similar term indicating the final phase of a product's lifecycle. In the Introduction stage, a new product is launched, and marketing efforts focus on building awareness and developing a customer base. During the Growth stage, sales begin to increase significantly as the product gains market acceptance, leading to improvements and enhancements based on consumer feedback. The Maturity stage sees sales peak as competitors enter the market, and the focus shifts toward maintaining market share and managing the established product efficiently. Lastly, in the Decline stage, sales and profits start to decrease, often due to market saturation or newer alternatives. The inclusion of Senility as a final phase reflects the reality that many products experience a prolonged decline before they are ultimately phased out. Other options presented do not precisely capture the conventional understanding of the lifecycle stages or substitute terms that don't align with the widely accepted structure.