Assessment of Skills and Knowledge(ASK) in Fundamental Marketing Concepts Practice Test

One of the ways in which a business can revive a product that is in the decline stage of the product life cycle is to __________ the product.

1. Repackage

2. Discontinue

3. Remove

4. Position

The correct answer is: Repackage

Repurposing or repackaging a product that is in the decline stage of its life cycle is a strategic way to stimulate renewed interest and sales. By updating the packaging, a business can create a fresh perception of the product, aiming to attract both new customers and re-engage existing ones. This approach can include redesigning the product's visual aspects, altering its branding, or even introducing new features while maintaining the core product. Such modifications not only enhance the product’s shelf appeal but also can differentiate it in a crowded market, potentially reviving its popularity. In contrast, discontinuing, removing, or simply repositioning the product without changing its packaging does not effectively address the issues of declining sales. Discontinuing or removing the product suggests complete withdrawal from the market, which does not allow for the possibility of rejuvenation. While repositioning involves changing the target market or adjusting the perceived value of the product, it may not be as effective without also repackaging to visually communicate those changes. Thus, repackaging stands out as the most proactive and effective approach to reviving interest in a declining product.