Which of the Following Statements About the Product Life Cycle

question 227

Multiple Choice

Which of the following statements about the product life cycle as a pricing constraint is most accurate?

• A)The newer a product is,the higher the price that can usually be charged.
• B)The later in the product life cycle a product is,the higher the price that can usually be charged.
• C)Once a product is considered nostalgic,the price will continue to rise indefinitely.
• D)Fads will generally have only two price points-high and low-but the values of those price points usually will be within 10 percent of each other.
• E)Prices should not be changed until a product reaches its maturity stage.

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Definitions:

Concentrated Targeting

A market strategy where a business focuses its marketing efforts on a single market segment using one marketing mix.

Micromarketing

Tailoring products, services, and marketing campaigns to suit the tastes and preferences of specific local markets or customer segments.

Mass Customization

A production and marketing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Salient Attributes

Features or aspects of a product or service that are most noticeable and important to the consumer.