Intense price wars are likely to occur during the growth stage of the product life cycle as competitors attempt to gain market share.

Question

Quizplus · Accepted Answer

During the growth stage, demand for the product is increasing, and competitors are trying to establish themselves in the market. Due to this, they often engage in price wars to gain or maintain market share. This allows them to attract price-sensitive customers and capture a larger share of the market. Therefore, it is true that intense price wars are likely to occur during the growth stage of the product life cycle.

Intense Price Wars Are Likely to Occur During the Growth