As a product moves through its product life cycle:
A) industry profits may decrease while industry sales increase.
B) the nature of competition moves toward pure competition or oligopoly.
C) entirely different target markets may be aimed at.
D) customers' attitudes and needs may change.
E) All of the above are true.

Question

Quizplus · Accepted Answer

All of the above statements are true as a product moves through its product life cycle. Industry profits may decrease as competition increases, but sales may still increase. The nature of competition may change from monopolistic competition in the introduction stage to pure competition or oligopoly in the maturity and decline stages. As the product becomes more established, entirely different target markets may need to be considered in order to continue growth. Lastly, as customer preferences and needs change over time, companies may need to adapt their marketing strategies accordingly.

As a Product Moves Through Its Product Life Cycle