Which of the following is most likely true of a product in the maturity stage of the product life cycle?
A) Sales are zero, and the company's investment costs mount.
B) New competitors enter the market.
C) A slowdown occurs in sales growth.
D) Sales increase with decreasing competition.
E) New distribution channels are acquired.

Question

Quizplus · Accepted Answer

The maturity stage of the product life cycle is characterized by a slowdown in sales growth, as the product has reached its maximum market penetration and saturation. This is often accompanied by increased competition, but not necessarily new competitors entering the market. Sales may still increase, but at a slower rate than in the growth stage. There may be efforts to acquire new distribution channels, but this is not a defining characteristic of the maturity stage. Option A is incorrect as sales are not zero in the maturity stage and investment costs may be recouped due to sustained sales. Option D is not necessarily true, as decreasing competition could also mean decreasing demand or market saturation.

Which of the Following Is Most Likely True of a Product