- 15 Marks
PM – May 2018 – L2 – Q6 – Ethical Considerations in Performance Management
Discuss the changes in unit selling price and production costs through the four stages of the product life cycle.
Question
Ben John (BJ) Limited produces light fittings, known for their constant design innovation and short product market life cycle. The company launched the new product using a market skimming pricing policy. Explain, with reasons, the likely changes that will occur in the unit selling price and unit production costs of the product as it moves through each of the four stages of its product life cycle:
a. Introduction;
b. Growth;
c. Maturity;
d. Decline.
Find Related Questions by Tags, levels, etc.
- Tags: Cost Changes, Market Skimming, Pricing Strategy, Product Life Cycle
- Level: Level 2
- Topic: Pricing Strategy
- Series: MAY 2018
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