Answer to Question #51785 in Other Economics for rini
Elaborate the relationship between international product life upto theories with reference to Indian market?
The International product life cycle, which was developed by the economist Raymond Vernon in 1966, is still a widely used model in economics and marketing. Products enter the market and gradually disappear again. According to Vernon, each product has a certain life cycle that begins with its development and ends with its decline. According to Vernon there are four stages in a product’s life cycle: “introduction”, “growth”, “maturity” and “decline”. The length of a stage varies for different products, one stage of the product life cycle may last some weeks while others even last decades. This shows that the product life cycle is very similar to the diffusion of innovation model that was developed by Everett Rogers in 1976. The life span of a product and how fast it goes through the entire cycle depends on for instance market demand and how marketing instruments are used.