IGCSE Business Studies (0450)
Product: costs/benefits of new products, brand image, packaging, product life cycle
What this topic tests, the mistakes that cost marks, and one exam-style question worked through step by step.
Key ideas and common mistakes
- To name a product life cycle stage, match its position and sales level: the stage straight after launch, when sales are still low, is introduction, before sales rise in growth.
- Identifying the 'growth' stage on a product life cycle diagram requires linking the description of rapidly increasing sales to the correct label.Common mistake: Not confusing it with the 'introduction' (slow sales) or 'maturity' (sales peak) stages.
- To name a product life cycle stage, match the sales pattern: sales that fall after the peak as the product loses popularity mark the decline stage, not maturity, where sales level off.
- To outline a benefit of new products, name the general advantage, such as more customers or a unique selling point, and link it to Verdana's frozen yoghurt flavours.
- Distinguish between different roles of packaging (such as protection/preservation and promotion/branding), and avoid repeating the same role or confusing a role with its effect (e.g., increased sales is an effect, not a role itself).
Worked example
Outline two benefits to Verdana Foods of developing new products. Benefit 1: Benefit 2:
Try it first, then show the working
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New products help a business keep sales growing, stand out from rivals, spread risk and enter new markets. Each benefit needs a link to Verdana's frozen yoghurt.
Answer: New flavours of frozen yoghurt can attract new customers and increase sales. A new flavour can also give Verdana a unique selling point that it can show on the packaging, giving it an advantage over competitors.
Try one yourself
On the product life cycle diagram, which stage is labelled A (just after the product is launched, with low sales)?Answer it and get it marked →
On the product life cycle diagram, which stage is labelled B, where sales rise rapidly?Answer it and get it marked →
On the product life cycle diagram, which stage is labelled C, where sales reach their peak and level off?Answer it and get it marked →
10 exam-style questions on Product: costs/benefits of new products, brand image, packaging, product life cycle, each marked to the scheme.
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Questions are exam-style practice written to the IGCSE Business Studies (0450) syllabus. Cambridge IGCSE is a registered trademark of Cambridge University Press & Assessment; MOOBON Axiom is independent and not affiliated with it.