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 indicated... 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
Identify the Product Life Cycle Stages
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The product life cycle includes four main stages: Introduction, Growth, Maturity, and Decline. Each stage reflects a different phase in the sales and marketing of a product.
Step 2
Analyze the Price Reduction Decision
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Reducing the price of the current razor indicates an effort to clear out inventory before launching a new model. This tactic is commonly used in the Decline stage, where sales are decreasing and the company aims to attract remaining customers and maintain market share.
Step 3
Conclude with the Correct Answer
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Based on the analysis, the correct stage of the product life cycle indicated by the price reduction of the current razor is D. Decline.
