Question : During which stage of the product life cycle is there a rapid increase in sales and profits?
Option 1: Introduction
Option 2: Growth
Option 3: Maturity
Option 4: Decline
Correct Answer: Growth
Solution : The correct answer is (b) Growth.
During the growth stage of the product life cycle, there is a rapid increase in sales and profits. This stage follows the introduction stage, where the product is launched into the market. In the growth stage, customer awareness and acceptance of the product increase, leading to a significant rise in sales volume and market share. The product gains traction, attracts more customers, and generates growing revenues and profits. During this stage, companies may also experience economies of scale and improved production efficiency, which can further contribute to increased profitability.
The growth stage is an exciting and crucial phase for a product's success, as it presents opportunities for expanding market share, capturing new customers, and generating substantial profits. It is important for companies to effectively manage the growth stage and capitalize on the momentum to sustain long-term success as the product moves into subsequent stages of the product life cycle.
