Firms use competitive or brand advertising when a product enters the _____ of the product life cycle and other companies begin to enter the marketplace.

Question

Quizplus · Accepted Answer

Competitive or brand advertising is used in the growth stage of the product life cycle when the market becomes more crowded with competitors. This stage is characterized by increased competition and switching behaviour of customers, and firms need to differentiate their product from competitors through advertising. The introductory stage is too early for competitive advertising, the formative stage is too early for any type of advertising, and the decline stage may not be profitable enough to justify advertising expenditures.

Firms Use Competitive or Brand Advertising When a Product Enters