Question
When some of its competitors had stopped
producing movies in VHS cassette format, Disney
announced that it would still produce its movies in
VHS format. These companies' decisions suggest
that VHS movies are probably in the _______
stage of the product life cycle.
A. market introduction
B. market growth
C. sales decline
D. market maturity
producing movies in VHS cassette format, Disney
announced that it would still produce its movies in
VHS format. These companies' decisions suggest
that VHS movies are probably in the _______
stage of the product life cycle.
A. market introduction
B. market growth
C. sales decline
D. market maturity
Answers
GPT-4o mini
The correct answer is C. sales decline.
When competitors stop producing products in a particular format (in this case, VHS), it indicates that the market for those products is shrinking, which is characteristic of the sales decline stage in the product life cycle. Disney's decision to continue producing VHS movies suggests they see potential in that remaining market segment despite the overall decline in demand for VHS cassettes.
When competitors stop producing products in a particular format (in this case, VHS), it indicates that the market for those products is shrinking, which is characteristic of the sales decline stage in the product life cycle. Disney's decision to continue producing VHS movies suggests they see potential in that remaining market segment despite the overall decline in demand for VHS cassettes.