chapter 8 Flashcards
product life cycle and what are the stages.
stages a new product goes through.
Intro, growth,maturity, decline
In this stage, profits are negative or low.
introduction stage
-In this stage, there’s an increase in competition and a rapid rise in sales and profits.
growth stage
The maturity stage is characterized by
-slowing product growth
-longest stage
-marking down prices, increase advs
define minor, continuous, radical innovations
-requires no new learning by consumers
-changes consumers’ regular routines but doesn’t require total new learning.
-requires new learning
some consumers are more ready than others to buy a product innovation
adoption curve
Delete
company discontinues a product
harvest
keeps a product but reduces marketing
penetration pricing
the company uses a low price to enter the market
line extension
new item is added to an already existing product line
product life cycle, high-learning product
significant consumer education is required
product life cycle, low learning product
little consumer education is required.
fashion product
short life cycle
going from intro —> decline within 2 years just to resurface a few years later
Fad product
short product life
immediate growth and rapid decline
