Steps of PEC: the five stages in this evolutionary process, which the authors call the product evolutionary cycle (PEC) are as follows…
1. Divergence: it is the start of a new product type (eg. TV). This term is suggested because most often a product is not an entirely new concept but a modification or combination of existing products and technologies. It is a divergence from a line of product evolution. Thus TV may be considered an evolutionary divergence from the radio and the motion picture.
2. Development: it is the pattern that occurs where a new product’s sales increase rapidly and the product is increasingly adapted to suit consumer needs best.
3. Differentiation: it is the pattern that occurs when a highly successful product is differentiated to suit varying consumer interests.
4. Stabilization: it is a pattern characterized by few and minor changes in the product category, bur numerous changes in packaging, service deals, product accessories, and stable or fluctuating sales. For example black and white TV to Plasma TV.
5. Demise: it occurs when a product fails to meet consumer expectations or can no longer satisfy changes in consumer demand. Sales decline and the product is ultimately discontinued.
