Commercial Applications
Assertion (A): The decline stage of the product life cycle is characterized by a decrease in sales and market share.
Reason (R): Companies should invest heavily in marketing and innovation during the decline stage to revive the product's growth.
- A is true but R is false
- A is false but R is true
- Both A and R are true and R explains A.
- Both A and R are true but R does not explain A.
Marketing Mix
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Answer
A is true but R is false
Reason — Assertion (A) is true because the decline stage is characterised by sharp fall in sales and market share due to displacement by superior products or change in consumer preferences. However, Reason (R) is false because during the decline stage, promotional expenditure has to be reduced drastically to minimise loss, and most firms shift their attention to other products rather than investing heavily.
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