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Question
Assertion (A): The decline stage of the product life cycle is characterized by a decrease in sales and market share.
Reasoning (R): Companies should invest heavily in marketing and innovation during the decline stage to revive the product's growth.
Options
A is true but R is false.
A is false but R is true.
Both A and R are true and R explains A.
Both A and R are true but R does not explain A.
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Solution
A is true but R is false.
Explanation:
The assumption is correct because the decline stage is characterized by declining sales, changing customer preferences, and a dwindling market share. However, the reasoning is false since corporations often harvest, sell, or divest products in this terminal stage rather than investing substantially, as pouring massive effort into marketing and innovation for a dying product rarely provides a lucrative return.
