Which of the following best describes the conditions found in the market maturity stage of the product life cycle?
A. Consumers view the products in the market as homogenous.
B. Industry profits begin to rise.
C. Promotional advertising is unnecessary.
D. Industry sales are at their lowest point.
E. New firms can only enter the market during this phase.
Answer: (A) The question focuses on the understanding of the product life cycle and its maturity stage. In market maturity, products vary only slightly from that of the competition. Because of this, a lot of product differentiation is minute, and the focus may be on low prices. In addition competitors may have copied marketing variables from the industry leader. (B) is incorrect. Industry profits begin to decline in this phase because of the numbers of competitors who have entered the market. Promotional advertising is necessary during this phase, so that companies can point out their product differences, thus (C) is incorrect. (D) is incorrect. Industry sales are not at their lowest; conversely, they are at their highest. (E) is also incorrect. A firm can enter the market during any phase of the product life cycle.
Learn More :
Principles of Marketing
- Which of the following is a primary function of first-line managers:
- One of the reasons why it is important for employees to continue their education throughout their careers is to be prepared for
- Is it acceptable business practice to prepare a job resume without listing any references?
- Offering to provide additional information after a job interview is often the function of a(n)
- Before Clark's interview, he developed a list of questions to ask his potential employer. He wanted to know: Why is this job open? What are the benefits? What additional training will be required? Who will supervise my work? Which of the questions should Clark avoid asking?
- Which of the following is an appropriate response to the question on an employment application that asks the reason for leaving a previous job?
- Even when times are tough for Caitlin's business venture, she tends to remain positive- she looks at the glass as half full rather than half empty. What characteristic of entrepreneurship is Caitlin exhibiting?
- Which of the following is a source of career information that is available in most schools:
- In many types of businesses, joining a labor union is considered one of a worker's
- Which of the following is a true statement about developing self-understanding:
- If you have a problem and decide to "sleep on it," you're using the _____ method of problem solving.
- Which of the following is a benefit of putting your goals in writing
- One of the ways that being organized helps you to maintain good relations with coworkers is by
- Some businesses increase their productivity by using assembly lines, standardized parts, and division of labor. This helps achieve
- Jim works for a small department store. Each of the departments within the store is responsible for ordering its own merchandise. This is an example of
- How can an individual employee help protect company information on a daily basis?
- When Josh arrived at work this morning, he saw that the company safe was open, the office was in disarray, and his laptop computer was missing. Josh should immediately report the situation to the local
- A good way to prevent accidents in the workplace is to
- Carl wanted to show his coworkers how strong he is by trying to carry several cases while unloading a truck in the receiving area. He stumbled and dropped two of the cases, ruining the contents and hurting his back. What type of safety hazard should his evaluation reflect?
- An important reason why employees should follow instructions when using heavy machinery is to
- The primary reason that government develop workplace health and safety regulations is to
- An advantage to a business that uses collaborative computer software is that its employees can share information quickly, which increases their
- In which of the following situations would a business use a spreadsheet software program to estimate the effect of change on its financial situation:
- With the use of a presentation software program, Martin selects a standardized group of slides and enters the appropriate text and graphics in each slide. What is he using to design his presentation?
- Which of the following is the address of a website that a business might obtain by conducting a search on the web: