Identify a true statement about the different stages of a product life cycle.
A)Profits increase and are positively correlated with sales during the growth stage of the product life cycle.
B)The production and marketing costs are generally low during the introduction phase of the product life cycle.
C)A seller makes price concessions,increases product quality,or expands outlays on advertising and sales promotion during the growth stage.
D)As a product matures,profits for an initiating firm keep pace with sales.

Question

Quizplus · Accepted Answer

During the growth stage of the product life cycle, sales increase and this is positively correlated with profits. Therefore, statement A is true. Statement B is false because production and marketing costs are typically high during the introduction phase. Statement C is partially true as a seller may make price concessions or increase product quality, but may not necessarily expand outlays on advertising and sales promotion. Statement D is false because as a product matures, profits for an initiating firm usually decline due to increased competition and saturation of the market.

Identify a True Statement About the Different Stages of a Product