Which product is in a different stage of the product life cycle than t

QUESTION

Which product is in a different stage of the product life cycle than the other products?

A) Product A: Focus is on reducing costs and instituting efficiencies.
B) Product B: Sales are slowing.
C) Product C: Competition is growing.
D) Product D: Managers are adding staff and building inventory while maintaining product quality.
E) Product E: The manufacturer is going to offer the product in additional colors and shapes.

ANSWER

Answer: D
Explanation: D) Products A, B, C, and E are in the maturity stage of the product life cycle. In this phase, sales slow (Product B) as competition makes inroads (Product C). At this point, managers need to concentrate on reducing costs and instituting efficiencies to maintain the product’s profitability (Product A). Sometimes they can extend the life of the product by tinkering with its various features (Product E). Product D is in the introduction stage. This is the stage that is heavy on startup costs for production, marketing, and distribution. Managers have to concentrate on building inventory and staff without loss of quality (Product D).