A manufacturer with a product in the decline stage of the product life cycle would most likely decide to ________ if there is reason to believe that there will be a small but continuing demand for the product.
A) maintain the product without change
B) let existing stocks of the product run out
C) drop the product immediately
D) search for replacements
E) increase sales promotion efforts

Question

Quizplus · Accepted Answer

In the decline stage, the product still has a small but loyal customer base who continue to use the product. Therefore, maintaining the product without change would be the best option for the manufacturer as it would help them to continue to serve their loyal customers and earn some revenue. Letting existing stocks run out or dropping the product immediately would lead to a loss of revenue and market share. Searching for replacements and increasing sales promotion efforts would not be effective as the demand for the product is declining.

A Manufacturer with a Product in the Decline Stage of the Product