Question at position 6 Which statement about the product life cycle as a pricing constraint is most accurate?Fads will generally have only two price points—high and low—but the values of those price points usually will be within 10 percent of each other.The newer a product is, the higher the price that can usually be charged.Once a product is considered nostalgic, the price will continue to rise indefinitely.The later in the product life cycle a product is, the higher the price that can usually be charged.Prices should not be changed until a product reaches its maturity stage.

Question

Question at position 6 Which statement about the product life cycle as a pricing constraint is most accurate?Fads will generally have only two price points—high and low—but the values of those price points usually will be within 10 percent of each other.The newer a product is, the higher the price that can usually be charged.Once a product is considered nostalgic, the price will continue to rise indefinitely.The later in the product life cycle a product is, the higher the price that can usually be charged.Prices should not be changed until a product reaches its maturity stage.

BlackTom AI · Accepted Answer

Question at position 6 asks about the product life cycle as a pricing constraint. Here’s a breakdown of each option to understand which one aligns with PLC pricing dynamics.

Option 1: 'Fads will generally have only two price points—high and low—but the values of those price points usually will be within 10 percent of each other.' This statement imposes a narrow, circular rule on pricing for fads that isn’t a standard or reliable principle in pricing strategy. In reality, fads can experience rapid price changes, and the gap between high and low points is not constrained to a 10 percent range; pricing is more often driven by demand, novelty, and competitive moves than by a fixed proximity between two points.

Option 2: 'The newer a product is, the higher the price that can usually be charged.' This aligns with the classic practice of price skimming or premium pricing during the introduction stage of the PLC. When a product is new, early adopters are often willing to pay more, costs are high, and the firm aims to recover fractory development expenses. Therefore, higher introductory prices are commonly justified to maximize early margins.

Option 3: 'Once a product is considered nostalgic, the price will continue to rise indefinitely.' This describes an unsustainable and simplistic assumption. Nostalgia does not guarantee perpetual price increases; demand tends to fade over time, and price appreciation would typically reverse as the market shifts and competition intensifies. Prices rarely rise indefinitely in the nostalgia stage.

Option 4: 'The later in the product life cycle a product is, the higher the price that can usually be charged.' In most PLC scenarios, prices tend to decline or stabilize as products mature, face competition, or become commoditized. This statement contradicts common pricing trajectories where prices are maintained or reduced rather than increased in later stages.

Option 5: 'Prices should not be changed until a product reaches its maturity stage.' This is overly rigid. Real-world pricing often involves adjustments before maturity (introductory discounts, promotional pricing, bundling) and continues after maturity due to competitive dynamics, demand changes, or cost shifts. Holding prices fixed until maturity can erode market share.

Taking all options together, the one that best reflects established PLC pricing behavior is Option 2, which describes higher pricing when a product is new and entering the market. The others rely on inaccurate or overly simplistic assumptions about price behavior across the lifecycle.

类似问题

Sales peak at the __ stage of PLC.

Profits reach a turning point during the decline stage of the product life cycle.

What should a firm mainly focus on when its product is at the maturity stage?

Firms are battling to defend or increase their market share, but they are using different strategies – some are entering new markets and some are innovating. Which PLC phase does this describe?

Which stage is not included in the product life cycle?

Which of the following statements about the stages of the product life cycle is FALSE?

At which stage in the product life cycle would your promotional objective be to persuade the consumer to buy your brand via differentiation from competitors?

Sales exhibit a downward trend throughout which stage of the product life cycle?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单