Certified Supply Chain Professional (CSCP) Practice Exam

During which stage of the product life cycle do sales typically start to pick up?

1. Development

2. Introduction

3. Growth

4. Decline

The correct answer is: Growth

Sales typically start to pick up during the growth stage of the product life cycle. This stage follows the introduction phase, where the product has been launched but may have seen slow sales due to limited market awareness and demand. As the product gains recognition and begins to meet customer needs effectively, factors such as increased marketing efforts, positive word-of-mouth, and broader distribution channels contribute to rising sales volumes. During the growth stage, more customers become aware of the product and start to purchase it, leading to an increase in market penetration. This stage is characterized by higher production volumes and improved profit margins, because economies of scale kick in as manufacturing and distribution processes become more efficient. In contrast, the other stages do not reflect the same dynamics. The development stage is primarily focused on product design and market research, with no sales yet occurring. The introduction stage sees limited sales as the product is still being presented to the market. Finally, the decline stage is marked by falling sales as consumer interest wanes or newer products emerge.