ITPEC FE Morning April 2022 Question 67

Selling to early adopters and working to make the product known — the introduction stage of the product life cycle.

Just after launch, few customers know the product, so sales are low and promotion costs keep profit low or negative. Buyers are the early adopters, and the priority is building product recognition. The four stages differ as follows:

Answer (a)

Why not others:

• •(b) — slowing demand growth and defending share and profit through quality improvement describe the maturity stage
• •(c) — falling sales and profit, no further investment and thoughts of withdrawal describe the decline stage
• •(d) — rapidly rising sales, an active market and new entrants intensifying competition describe the growth stage

Key rule: Introduction builds awareness, growth rides rising sales and new rivals, maturity defends share, and decline cuts investment or withdraws.

Business Strategy Management · AI-written, may contain errors