Question

Products in the ___ of the product life cycle tend to consume a disproportionate share of management and financial resources relative to their future worth.

Answer 1

Answer:

Decline stage

Explanation:

The decline stage of the product life cycle is the terminal stage where sales drop and production is ultimately halted. Profitability will fall, eventually to the point where it is no longer profitable to produce, and production will stop.

During decline, sales growth becomes negative, profits decline, competition remains high, and the product ultimately reaches its ‘death’.

Hence, this stage of the product life cycle ultimately tend to consume a disproportionate share of management and financial resources relative to their future worth as the next stage is the death of the product.