Which of the following should happen in the growth stage of the product life cycle?
A) Attempt to maintain price to the end
B) Cut low-gross-margin products from the line
C) Long-term price reduction or at least a short-term price promotion
D) Sales force incentives and management
E) Consider divesting while it is a going concern

Question

Quizplus · Accepted Answer

During the growth stage of the product life cycle, demand for the product increases, and sales volume grows. The best choice during this stage would be to implement long-term price reduction or at least a short-term price promotion in order to attract more customers and gain market share. This will help the company increase its sales and revenue, and establish its brand. It is important to note that maintaining price to the end or cutting low-gross-margin products might limit the growth potential of the product, and sales force incentives and management can be more appropriate in the maturity stage. Divesting while it is a going concern is not a suitable option during the growth stage when the product is generating positive results.

Which of the Following Should Happen in the Growth Stage