Question

Which of the following is true of the maturity stage of the product life cycle?a) Harvesting is a strategy that is widely used by companies during the maturity stage.b) A high initial price may be used in the maturity stage as part of a skimming strategy.c) Competition and aggressive pricing results in peak profits during the maturity stage.d) Sales increase at a decreasing rate as fewer new buyers enter the market.e) Product sales are mainly due to customers who are trying the product for the first time.

Answer 1

Answer:

d) Sales increase at a decreasing rate as fewer new buyers enter the market.

Explanation:

The life cycle has four stages - introduction, growth, maturity and decline. While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand and dropping sales