1. When you purchase a home stereo system, which of the following is part of its augmented product?

The one-year warranty it came with.

The packaging it came in.

The 200 watts per channel amplifier.

The fact that people can hear its mega bass speakers all the way down the block.

The way it fits neatly on the bookshelf in your room.

2. Which of the following is FALSE about the Product Life Cycle (PLC)?

The PLC is a useful way to describe industry changes over the life of an innovation.

During the Introduction stage, profits are slim or non-existent.

During the Growth stage, the product is accepted and sales increase rapidly.

Often the Decline stage is brought on by new technology that makes the existing product obsolete.

Industry profits peak during the Maturity stage of the PLC.