Which of the Following Statements About the Decline Stage of the Product

question 334

Multiple Choice

Which of the following statements about the decline stage of the product life cycle is most accurate?

• A) Somewhat paradoxically, in the decline stage, sales decline even though profits increase.
• B) A product always enters the decline stage as the result of a major product flaw or marketing misstep.
• C) A major reason that a firm's product enters the decline stage is as a result of changes in the environment.
• D) The only real step that can be taken to avoid the decline stage and ultimately extinction is to increase marketing expenditures as soon as the product enters its maturity stage.
• E) Service industries are exempt from the decline stage because of their intangible nature.

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Definitions:

Autokinetic Effect

A visual phenomenon in which a stationary point of light in a dark room appears to move due to small involuntary eye movements.

Conforming Behavior

Actions that align with the norms, values, or expectations of a social group or society.

Group Norms

Accepted standards and expectations that are shared by a group and guide the behavior of its members.

Homogeneous Goals

Objectives that are uniform or similar in nature within a group, leading to a more cohesive and unanimous effort towards achievement.