It's What's Hip, a chain of 18 music and CD stores, has discovered that carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs?

It's What's Hip, a chain of 18 music and CD stores, has discovered that carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs?



A) takes up much of management's time
B) frequent price and inventory adjustment
C) requires advertising and sales force attention
D) requires too much focus on new-product development
E) negatively affects the company's reputation


Answer: D


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