When a Product Is in the Growth Stage of Its

question 60

Multiple Choice

When a product is in the growth stage of its product life cycle:

• A) all elements of the promotional mix are equally important
• B) heavy advertising is used to build brand loyalty
• C) persuasive and reminder advertising is decreased
• D) personal selling is ineffective
• E) personal selling and sales promotions are the major elements of the promotional mix used

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Definitions:

Unexpectedly High

A level or measure that exceeds what was anticipated or forecasted.

Natural Rate

The long-term rate of unemployment around which the unemployment rate fluctuates, or the rate of output expected when resources are fully employed.

Aggregate Demand

The complete demand for all categories of goods and services in an economy, evaluated at a given price level for a particular period.

Inflation

How fast the broad price levels for goods and services climb, undercutting the ability to buy.