ITPEC FE Morning April 2019 Question 68
ITPEC FE Morning April 2019 — Question 68 of 80
Product Life Cycle — Growth Stage — The market recognizes the product's value; sales increase while investment continues.
The product life cycle has four stages: Introduction → Growth → Maturity → Decline.
The growth stage is characterized by:
- The market begins to understand the product's worth
- Sales increase steadily
- Product line and distribution channels need to be expanded
- Continued investment is still required
Answer: d) — describes the growth stage: market recognition, expanding product lines/channels, rising sales, and ongoing investment.
Why not the others:
- a) describes the decline stage — demand decreases, companies withdraw, migration to alternative markets is considered
- b) describes the introduction stage — demand is occasional, focus on exploiting new demand and committing to a target market
- c) describes the maturity stage — demand peaks, competition intensifies, product differentiation and cost reduction become priorities
Key rule: Growth = market starts appreciating the product + sales rising + expanding reach + still investing. Maturity = peak demand + fierce competition + cost reduction.
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