Final answer:
The Correct option is 1). The retail life cycle phases are introduction, growth, maturity, and decline, paralleling various other progressive models such as the demographic transition model and Rostow's economic development stages.
Step-by-step explanation:
The retail life cycle suggests that firms move from the introduction stage to the growth stage to the maturity to the decline stage. This lifecycle is often compared to various models that illustrate the development and progression of entities over time, such as the demographic transition model, the business cycle, and social movements, each involving stages of initiation, growth, maturation, and decline.
For example, in sociology, the family life cycle is used to explain the evolution of families, with unique challenges and needs at each stage, which consumer and marketing researchers utilize to understand product and service needs. Similarly, Rostow's model of economic development outlines a country's growth from a "traditional society" to an "age of high mass consumption". Each of these models highlights the natural progression and inevitable stages of growth and retraction that a business or entity experiences.