In which stage of the PLC would promotional expenditures most likely increase as a company attempts to react to increasing competition?
A)product development
B)introduction
C)growth
D)maturity
E)decline

Question

Quizplus · Accepted Answer

In the growth stage of the PLC, the product or service is gaining acceptance and sales are increasing rapidly. As a result, competition is also likely to increase, which may require a company to increase their promotional expenditures to maintain their market share and attract new customers. In contrast, during the introduction stage, promotional expenditures may be high to create awareness and generate interest, but there is typically less competition. In the maturity and decline stages, promotional expenditures may decline as sales level off or decline.

In Which Stage of the PLC Would Promotional Expenditures Most