Question

Sales decline in the decline stage of the PLC because of technological advances, shifts in consumer tastes and preferences, and ________.

Answer 1

Sales decline in the decline stage of the PLC because of technological advances, shifts in consumer tastes and preferences, and Increased competition.

Explanation:

The decline stage of the product life cycle is the final phase when sales and production are eventually stopped. Profitability will eventually decrease, and production will stop. It is no more profitable.

A decrease in sales is seen with increasing competition and product preference falling. A decline in the sales price leads to lower profits and losses for the company in some cases.

When market competition grows and several firms start dominating the market, revenue and profits are hard to sustain for the failing businesses. With the developments in new technology, consumer tastes will also shift, which may ultimately make goods redundant.