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.
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.
Related Questions
In declining stage of PLC, which tool would be more preferred?
- Sales promotion
- Personal selling
- Advertising
- Publicity
The strategy of introducing new product in existing market is classified as
- Market development
- Market Penetration
- Product development
- Diversification
Markup pricing is also called as
- Cost pricing
- Marginal priced
- Cost plus pricing
- Cost based pricing
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
- 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.