Which of the following statements is true about product life cycle theory?
A) In the early stages of the product life cycle, the demand for the new product is relatively insensitive to the price, and thus, a pioneering firm can charge a relatively high price.
B) It predicts that over time, the U.S. switches from an exporting country of new products to an importing country.
C) It has an "S" shaped curve when plotting "quantity sold" versus "time".
D) All of these.

Question

Quizplus · Accepted Answer

All the statements provided are true about the product life cycle theory. Statement A describes the introduction phase where price sensitivity is low, allowing for higher prices. Statement B reflects the theory's prediction about the shift in trade patterns for new products. Statement C accurately describes the typical "S" shaped curve of the product life cycle, representing the stages of introduction, growth, maturity, and decline.

Which of the Following Statements Is True About Product Life