Pricing strategies tend to change and evolve as the average product passes through its life cycle.

Question

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This statement is true. As a product passes through different stages of its life cycle (introduction, growth, maturity, and decline), the pricing strategy may change in response to changing market conditions and competition. For example, during the introduction stage, the company may use a skimming pricing strategy to set high prices and maximize profits, while during the growth stage, the company may switch to a penetration pricing strategy to gain market share and boost sales volume.

Pricing Strategies Tend to Change and Evolve as the Average