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 the above

Question

Quizplus · Accepted Answer

Product life cycle theory suggests that new products are initially produced and exported by the country of innovation (often the U.S.) and over time, production shifts to other countries, making the U.S. an importer. It also describes the demand and pricing strategy in the early stages and is often represented by an "S" shaped curve.

Which of the Following Statements Is True About Product Life