Commercial Applications
Statement 1: A product in the growth stage of its life cycle typically has low competition and high prices.
Statement 2: The maturity stage is characterized by intense competition and product differentiation.
Which of the following is correct?
- Only Statement 1 is correct.
- Only Statement 2 is correct.
- Both statements are correct.
- Both statements are incorrect.
Marketing Mix
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Answer
Only Statement 2 is correct.
Reason — Statement 1 is incorrect because in the growth stage, competition increases and prices fall. Low competition and high prices are characteristics of the introduction stage. Statement 2 is correct because the maturity stage is characterised by intense competition, product differentiation and product improvement.
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Assertion (A): The concept of the product life cycle suggests that all products follow a predictable pattern of stages from introduction to decline.
Reason (R): The length of each stage in the product life cycle is not fixed and vary based on industry or product type.
- A is true but R is false
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- Both A and R are true but R does not explain A.