Business Glossary

movement of a firm or its product through stages of development, growth, expansion, maturity, saturation, and decline. Not all products go through such a life cycle. For example, paper clips, nails, knives, drinking glasses, and wooden pencils do not seem to exhibit such a life cycle; most new products seem to, however. Some current examples include high-tech items such as computers, VCRs, and CDs.

most common usage refers to an individual's progression from cradle to grave and the assumption that the choice of appropriate investments changes. Term also applies to the life of a product or of a business, consisting of inception, development, growth, expansion, maturity, and decline (or change). Recently, the term has entered into the vocabulary of the family-owned business, referring to generations of management. The post-World War II baby boom produced entrepreneurs who built businesses that now approach a juncture where a second generation either takes over management or sells out.

movement of a firm or its product through stages of development, growth, expansion, maturity, saturation, and decline. Not all products go through such a life cycle. For example, paper clips, nails, knives, drinking glasses, and wooden pencils do not seem to exhibit such a life cycle. Most new products do. Some current examples include high-tech items such as computers, VCRs, and black-andwhite TVs.

period of time during which a positive reaction to advertising is noticeable. An advertisement or an advertising campaign is said to have a life cycle that begins with the introduction of the advertising and ends when the advertising is worn out and no longer elicits a positive response.