Certified Production & Operations Manager (POM) Practice Exam

What are the four stages of a product's life cycle?

1. Introduction, Growth, Maturity, Decline

2. Concept, Development, Launch, Harvest

3. Planning, Production, Sales, Review

4. Development, Implementation, Evaluation, Termination

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

The four stages of a product's life cycle are Introduction, Growth, Maturity, and Decline. This model is essential for understanding the progression of a product in the marketplace. In the Introduction stage, the product is launched, and the focus is on building awareness and attracting early adopters. During this phase, companies often experience low sales and high costs as they invest in marketing and distribution. As the product moves into the Growth stage, sales begin to increase significantly, customer acceptance rises, and the company starts to see profitability. This phase is critical for expanding market share and improving product features based on customer feedback. The Maturity stage marks a plateau in sales growth as the market becomes saturated. Here, the focus shifts to maintaining market position, differentiating from competitors, and possibly introducing variations or improvements to sustain interest. Finally, in the Decline stage, sales decline due to changing consumer preferences, technological advancements, or increased competition. Companies must decide whether to phase out the product, reduce costs, or innovate to rejuvenate interest. The other options listed, while they describe aspects of product development and management, do not align with the widely recognized stages of the product life cycle. Understanding the correct stages is vital for effective product management and strategic decision-making