Sales of XYZ Corporation's digital video cameras are rising rapidly, profits are peaking, and competitors are entering the market. XYZ is able to maintain its market lead. Judging from this example, the digital video camera is in which stage of the product life-cycle?
A) Introduction
B) Decline
C) Maturity
D) Growth
E) Evaluation

Question

Quizplus · Accepted Answer

The sales and profits are increasing rapidly, which indicates that the product is in the growth stage of the product life-cycle. The fact that competitors are entering the market suggests that the market is expanding, which is a characteristic of this stage. The product has not reached maturity yet because it is still experiencing significant growth, and it is not in decline because sales and profits are still rising. Evaluation is not a stage in the product life-cycle.

Sales of XYZ Corporation's Digital Video Cameras Are Rising Rapidly