Final answer:
The product life cycle concept is applicable to service sector firms in Zambia to a certain extent. Services, like physical products, go through stages of development, maturity, and decline.
Step-by-step explanation:
The product life cycle concept is applicable to service sector firms in Zambia to a certain extent. Just like physical products, services also go through different stages of development, maturity, and decline. For example, let's consider a telecommunications company in Zambia that offers mobile phone services.
In the introduction stage, the company introduces new services to the market, invests in infrastructure, and establishes a customer base. In the growth stage, the customer base expands, and the company introduces new features and improvements to attract more customers. In the maturity stage, the market becomes saturated, and the company focuses on retaining existing customers through loyalty programs and offering competitive pricing. Finally, in the decline stage, new technologies or competitors may emerge, leading to a decrease in demand for the service.
However, it is important to note that the product life cycle concept may not apply exactly the same way to services as it does to physical products. The timing and characteristics of each stage may vary depending on the nature of the service and the market dynamics.