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Lana71 [14]
3 years ago
8

A firm improves product quality and adds new product features and models. it also shifts some advertising from building product

awareness to building product conviction and purchase. at which stage of the product life cycle would this be a recommended​ strategy?
a. product development
b. introduction
c. maturity
d. growth
e. decline
Business
2 answers:
Ivan3 years ago
8 0

The stage of product life cycle that this would be a recommended strategy is growth. The growth stage is considered as the second stage in the product life cycle in which this stage covers the position of the product, establishing an increase of the sales and as well as improving the profit margin of the company or the business.

marin [14]3 years ago
6 0
The product life cycle (PLC) has 5 stages: product development stage, introduction stage, growth stage, maturity stage and decline stage.<span>
The strategy that includes shifting some advertising from building product awareness to building product conviction and purchase is part of the growth stage of the product life cycle. I</span><span>f the new product satisfies the market, it enters this  growth stage. In the growth stage the sales will start climbing quickly.</span>
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The question says that find the number of years that equals the total return which means the NPV from both investments is equal:

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r = - 8000 / 80000 = -0.01 = - 10%

The negative sign shows that project A can not make a positive NPV that will be equal to that of project B and vice versa. It can also be illustrated by putting the value of r in "NPV from Investment Project 1"

NPV from Investment Project 1 = ($255,000) + 21000 / -0.01

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This shows that the company will have to make losses of $465,000 which is not possible because company will not select projects with negative NPVs.

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