Which of the following is true of the growth stage of the PLC?
A)The laggards will begin to buy the product at this stage and the early adopters may follow.
B)The primary reason for growth at this stage is the lack of competitors in the market as the product is new.
C)The firm will begin to reduce its spending on all other parameters and focus only on production of the good.
D)Profits are nonexistent at this stage.
E)By spending a lot on product improvement and promotion, the firm gives up maximum current profit.

Question

Quizplus · Accepted Answer

During the growth stage of the PLC, sales rapidly increase and the product becomes more widely known. However, in order to maintain and continue this growth, the firm may need to invest heavily in product improvement and promotion, which may lead to decreased profit in the short term. This is the opposite of reducing spending on other parameters and focusing only on production, as suggested in choice C. Choice A is incorrect because by the growth stage, the early adopters have already purchased the product and laggards are not likely to purchase until later. Choice B is incorrect because the presence or absence of competitors will impact the growth rate, but it is not the primary reason for growth. Choice D is incorrect because although profits may be lower due to increased promotional and product improvement expenses, they should still be present.

Which of the Following Is True of the Growth Stage