Which of the following is true of the growth stage of the product life cycle?
A) New competitors avoid the market.
B) Prices tend to increase significantly.
C) Early adopters stop buying the product.
D) Profits are nonexistent at this stage.
E) Sales start climbing quickly.

Question

Quizplus · Accepted Answer

The growth stage is when sales start climbing quickly, as the product gains wider acceptance and more customers become aware of it. This stage is characterized by rapidly increasing sales volume, a growing number of competitors, and the emergence of market leaders. Prices may initially rise slightly due to increased demand, but tend to stabilize or even decline as more competitors enter the market, leading to more price competition. Early adopters may still be buying the product, but more mainstream customers are also starting to purchase it. While profits are often still relatively low at this stage due to the need for high marketing and distribution costs, they typically start to increase as sales volume grows.

Which of the Following Is True of the Growth Stage