Question

QUESTION 13 Which of the following statements is true about product life cycles a. Competition begins to increase quickly during the maturity stage b. Competition begins to increase quickly during the introduction stage c. Competition begins to increase quickly during the growth stage d. Competition begins to increase quickly during the decline stage

Answer 1

Answer:

a. Competition begins to increase quickly during the maturity stage.

Explanation:

Product life cycle are the different stages through which a product goes in the course of its existence. The stages are: development, introduction, growth, maturity, and decline.

In the maturity phase there is a leveling off of sales, and competition increases in the market. Firms will need to modify their products to meet up with competition and maintain market share.

Unit sales tend to be high but prices are reduced to gain competitive advantage. Production efficiency is high so production costs reduce.

Answer 2

Answer:

C) Competition begins to increase quickly during the growth stage

Explanation:

The four stages of a product's life cycle are:

1. Introduction Stage: the product is just being launched, generally results in low sales and large marketing budgets, until customers start to use and like the product.  
2. Growth Stage: sales start to grow and so does competition. Other competitors will enter the market and try to offer similar or slightly products in order to gain market share.  
3. Maturity Stage: the product is well established, and the producer will try to maintain its market share. generally different versions of the product are launched to try to renew consumer interest.
4. Decline Stage: the market starts to shrink as the product becomes obsolete. Total sales also start to fall until the product is not sold anymore.