Answer to Question 1
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Answer to Question 2
The product life cycle reflects the changes in demand for a product that occurs over time. The four stages of a product development cycle are:
1. Embryonic stage: In the embryonic stage a product has yet to gain widespread acceptance; customers are unsure what the technology embedded in the product has to offer them, so there is little demand for it.
2. Growth stage: In the growth stage many consumers are entering the market and buying the product for the first time. As a result, demand increases rapidly. Mobile computing devices are currently in this stage.
3. Mature stage: The growth stage ends and the mature stage begins when market demand peaks because most customers have already bought the product (relatively few first time buyers are left). At this stage, demand is typically replacement demand because incremental innovation has resulted in a new generation of products that have better features.
4. Decline stage: The decline stage follows the mature stage if and when demand for a product falls because quantum technological change results in the emergence of a superior alternative product and a product becomes technologically obsoletethe iPod replaced the Walkman, for example.
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