A Manufacturer of a Product in the Decline Stage of Its

question 113

Multiple Choice

A manufacturer of a product in the decline stage of its product life cycle would be LEAST likely to do which of the following?

• A)phase out production of the product
• B)withdraw most marketing support for the product and rely on e- commerce
• C)advertise heavily and use sales promotion efforts
• D)continue producing the product for loyal users
• E)reduce the advertising budget for the product

---

Definitions:

Profit

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Kinked-demand Curve

A demand curve that has a distinct bend or kink, typically illustrating that a firm in an oligopoly will experience a different elasticity of demand for price increases compared to price decreases.

Price Cut

A reduction in the price of a good or service to attract more customers or boost sales.

Price Increase

A rise in the cost of goods or services, often measured by inflation rates or observed in market prices.