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Which set of characteristics best describes the decline stage in the product life cycle? (A) Decreasing number of competitors, decreasing profits, high brand awareness (B) Decreasing number of competitors, decreasing profits, low brand awareness (C) Increasing number of competitors, increasing profits, high brand awareness (D) Increasing number of competitors, increasing profits, low brand awareness - HSC - SSCE Business Studies - Question 14 - 2010 - Paper 1
Question 14
Which set of characteristics best describes the decline stage in the product life cycle? (A) Decreasing number of competitors, decreasing profits, high brand awaren... show full transcript
Worked Solution & Example Answer:Which set of characteristics best describes the decline stage in the product life cycle? (A) Decreasing number of competitors, decreasing profits, high brand awareness (B) Decreasing number of competitors, decreasing profits, low brand awareness (C) Increasing number of competitors, increasing profits, high brand awareness (D) Increasing number of competitors, increasing profits, low brand awareness - HSC - SSCE Business Studies - Question 14 - 2010 - Paper 1
Step 1
Identify characteristics of the decline stage in the product life cycle
Answer
The decline stage is characterized by decreasing sales and profits as the product loses its market appeal. During this time, the number of competitors typically decreases as weaker products are phased out, and brand awareness may also decline due to reduced marketing efforts.
Step 2
Evaluate the options
Answer
Given the established characteristics of the decline stage:
- (A) mentions decreasing profits, which aligns with the decline stage, but states high brand awareness, which is inconsistent.
- (B) accurately reflects decreasing profits and decreasing brand awareness, making it a strong contender.
- (C) states increasing profits and high brand awareness, contradicting the decline stage.
- (D) refers to increasing profits, which is not characteristic of the decline stage.
Thus, option (B) is correct.
Step 3