Question

Outdoor Experiences, Inc. sells a tent that collapses down into a roll that is as big as a roll of toilet paper. The tent can be easily carried in a backpack. The tent has been in the market for two years, and the compnay is spending a lot on advertising to stimulate selective demand. The tent is in which stage of the product life cycle?

Answer 1

Answer:

The answer is: Growth stage

Explanation:

A product´s life cycle is usually divided into four stages:

1. introduction: the product enters the market, usually a substantial investment on marketing is needed
2. growth: if the product "survived" and started to sell then actions are necessary to make its demand and production grow. Usually a lot of spending in advertising is required at this stage.
3. maturity: Costs of marketing and production decline while the sales levels reach a maximum level.
4. decline: product´s sales and market share start to decline

The collapsible tent would be entering stage two of the product cycle.