The Music Industry Has Changed Dramatically Over the Years

question 78

Multiple Choice

The music industry has changed dramatically over the years. In the 1970s, consumers purchased 8-track tapes. In the 1980s, cassette tape players caused the decline of 8- track tape players. In fact, today consumers would experience difficulty in Purchasing a new artist on 8-track tape. Now in the 2000s, MP3 players have become very popular and are being purchased by music lovers of every age and background. As sales of MP3 players continue to grow at an increasing rate, sales of CD players are weakening, the profits are declining, and the product may face a fate similar to that of 8-track tape players. Based upon this information, you can correctly conclude that CD Players are in the________ Product life cycle. Stage, and MP3 players are in the ________stage of the

• A)decline; maturity
• B)maturity; growth
• C)decline; introduction
• D)decline; growth

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Definitions:

Monopoly Level

A state or degree in which a single company or entity has exclusive control over a particular market or industry.

Product Differentiation

A marketing strategy that involves distinguishing a product or service from others, to make it more attractive to a particular target market.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share.