Question

The CEO of David's firm just came back from a business seminar, and he called David into his office. "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that:
A. the product life cycle is not a useful concept. it is often impossible to identify with precision where a product is in the product life cycle.
B. the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation.
C. the idea has been discredited by recent research.
D. All of these.

Answer 1

Answer:

A. the product life cycle is not a useful concept. it is often impossible to identify with precision where a product is in the product life cycle.

Explanation:

The product life cycle is broken into four stages: introduction, growth, maturity, and decline. This concept is used by management and by marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging