Which of the Following Statements About the Product Life Cycle

question 6

Multiple Choice

Which of the following statements about the product life cycle (PLC) is true?

• A) The PLC concept encourages marketing managers to think reactively.
• B) Marketers do not yet understand the relationship between the adopter categories and the stages of the PLC.
• C) There are as many new buyers in the maturity stage of the PLC as in the growth stage.
• D) The PLC is especially useful as a predicting tool.
• E) Just as there are five adopter categories,there are five PLC stages.

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Definitions:

Overhead Budget

A financial plan estimating the expected indirect costs required to support operational activities within a certain period.

Variable Overhead Costs

Costs that fluctuate with production volume, such as utilities or raw materials.

Service Company

A business that provides non-physical goods or services to customers.

Planning Budget

A budget created for a particular level of activity, used as a tool for decision making and performance evaluation.