Which situation most clearly represents the decline stage of the product life cycle?
Correct answer: D. Sales fall as substitutes gain acceptance
- A. Sales stabilise while competition becomes intense
- B. Sales rise rapidly as distribution expands
- C. Sales remain low while awareness is created
- D. Sales fall as substitutes gain acceptance
Explanation
In the decline stage, sales and profits usually decrease because of changing preferences, new technology or substitute products. Rapidly rising sales describe growth, while stabilised sales are more typical of maturity.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Marketing
Marketing covers how organisations identify customer needs, create value and exchange products or services through suitable markets. Key concepts include market segmentation, targeting, positioning, consumer behaviour, the marketing mix of product, price, place and promotion, branding, product life cycle and differences between marketing and selling.
Practise Marketing
1,700 free Marketing MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Marketing questions
A company introduces a new product at a deliberately low price to gain market share quickly. Which pricing strategy is it using?
In marketing, consumer demand exists when a desire is supported by what condition?
A manufacturer advertises to final consumers and encourages them to request its product from retailers. Which channel promotion strategy is being used?
A company uses its established soap brand name to launch a new shampoo product. What branding decision does this illustrate?
A manufacturer wants its low-priced snack to be available in almost every grocery shop, kiosk and convenience store. Which distribution approach is most suitable?
A consumer realises that the current mobile phone no longer meets his or her needs. Which stage of the buying decision process has begun?