Which of the following statements is true regarding the maturity stage of the product life cycle?
A)It is characterized by the adoption of products by early adopters and early majority.
B)Firms try to ride the sales trend and firmly establish a brand during this stage.
C)It is characterized by rising sales, increasing profits, and few competitors.
D)Most firms usually exit the market at this stage on account of low profit margins.
E)It is characterized by increased marketing costs, low profits, and market saturation.

Question

Quizplus · Accepted Answer

The maturity stage is characterized by increased marketing costs, low profits, and market saturation. This is because there are many competitors in the market and the product has reached its peak in terms of sales. Firms may have to increase their marketing efforts to differentiate their product from competitors, but this comes at a cost and profit margins may decline. However, it is not true that firms exit the market at this stage on account of low profit margins. Some firms may continue to operate and try to maintain their market share or adapt their product to stay competitive.

Which of the Following Statements Is True Regarding the Maturity