A Manufacturer of a Product in the Decline Stage of Its

question 67

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) continue producing the product for loyal users
• B) reduce the advertising budget for the product
• C) phase out production of the product
• D) advertise heavily without changing the product or its target market
• E) withdraw most marketing support for the product and rely on e-commerce

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Definitions:

Unitary-elastic

A demand or supply situation where the percentage change in quantity demanded or supplied is exactly equal to the percentage change in price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Profit

The financial gain made by a business when revenue exceeds expenses.

Relationship

A connection, association, or involvement between two or more parties, often referring to interpersonal or business contexts.