Multiple choice

In the context of product life cycle, there could be various situations such as (a) low sales and marginal profit (b) fast growth and rising profits (c) falling sales and low margins

These may relate to (1) maturity (2) decline (3) growth (4) introduction

Which of the following is incorrectly matched?

  1. (a) - 1

  2. (b) - 3

  3. (c) - 4

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Introduction is the Stage 1 of product life cycle. Stage 1 is where the product is launched. A product launch is always risky. You never know how the market will receive the product. Characteristics of introductory stages of product life cycle are

a. Higher investment and lesser profits

b. Minimal Competition

c. Company tries to induce acceptance and gains initial distribution

d. Company needs promotions targeted towards customers to increase awareness and demand for the product

e. Company needs promotions targeted towards channel to increase confidence in the product  

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