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A company has reduced the price of their current razor as a new model will be released soon - HSC - SSCE Business Studies - Question 10 - 2020 - Paper 1
Question 10
A company has reduced the price of their current razor as a new model will be released soon. Which stage of the product life cycle for the current razor is indicate... show full transcript
Worked Solution & Example Answer:A company has reduced the price of their current razor as a new model will be released soon - HSC - SSCE Business Studies - Question 10 - 2020 - Paper 1
Step 1
Which stage of the product life cycle for the current razor is indicated by this decision?
Answer
The decision to reduce the price of the current razor indicates that the product is likely in the Decline stage of the product life cycle.
In the Decline stage, products typically face decreased demand, leading companies to lower prices to encourage remaining sales. This is often due to market saturation, the introduction of new models, or changing consumer preferences.
Therefore, the correct answer is D. Decline.