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.

Question

Business

Nico Werner

30 April, 11:32

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.

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Answers (1)

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Anika Beck · Answer 1

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