When a Product Reaches the Decline Stage of the Product

question 328

Multiple Choice

When a product reaches the decline stage of the product life cycle, a firm has two choices.One choice involves product deletion, where a product is dropped from a firm's product line.Another less drastic choice is to retain the product in the product line, but to reduce marketing costs.When this option called _________ is selected, advertising expenditures for the product are reduced, and salespeople do not devote their efforts to selling the product.

• A)decline maintenance
• B)paring down
• C)divestment
• D)maturity re-development
• E)harvesting

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Definitions:

3/15 Net 60

A term of payment indicating that a buyer can deduct a certain percentage if payment is made within 15 days, otherwise the full amount is due in 60 days.

Cash Discount

A reduction in price offered to a customer for paying in cash or within a specified short payment period.

Book Salesperson

An individual who specializes in selling books, typically working for publishers or bookstores and often responsible for organizing book fairs or visiting schools and libraries.

Cumulative Quantity

The total amount of a particular good or service that has been produced or delivered over a specific period.