Which of the following is true of the different stages in a product life cycle?

Question

Quizplus · Accepted Answer

Profits usually increase and are positively correlated with sales during the growth stage of the product life cycle. This is because as the product gains more acceptance in the market, sales volume increases, leading to economies of scale and reduced costs. At the same time, the brand loyalty and recognition acquired during the growth phase lead to higher margins and profits.

Answer: B
 The production and marketing costs are generally high during the introduction phase of the product life cycle. This is because companies need to invest heavily in research and development, prototyping, testing, and marketing to launch the new product successfully. Companies often have limited sales during this stage, which makes it challenging to recoup the upfront costs until the product gains wider acceptance.

Answer: C
 The growth stage is not the last stage of the product life cycle. The typical stages of the product life cycle are introduction, growth, maturity, and decline. While the growth stage can be lucrative for a product, it does not last indefinitely, and eventually, the product enters the maturity phase, where sales growth slows down, and the market becomes saturated.

Answer: D
 The amount of time and money spent on promoting products is highest during the introduction and growth stages of the product life cycle. As a product enters the maturity and decline phases, companies tend to spend less on promotion and focus on cost-cutting and consolidation measures. This is because the market is more competitive in the early stages, and companies need to differentiate their product and create brand awareness to gain market share.

Which of the Following Is True of the Different Stages