Which of the following statements is true of the maturity stage of an industry's life cycle?
A)The market size of the product shrinks significantly.
B)Growth starts to slow as total market penetration increases.
C)Demand increases as the early majority is convinced that the product concept works.
D)Toward the end of this stage product innovation starts to give way to process innovation.

Question

Quizplus · Accepted Answer

In the maturity stage of an industry's life cycle, growth starts to slow as total market penetration increases. This means that the product has already been adopted by the early majority and there are fewer potential customers left to convert. While demand may still be high, it will not continue to grow at the same rate as in earlier stages. The market size may still be significant at this stage, but it will not be shrinking as in option A. It is also not necessarily true that demand is increasing as the early majority is convinced that the product concept works, as this may have already happened in the earlier stages. Finally, while process innovation may become more important toward the end of this stage, it is not necessarily true that it will give way to product innovation.

Which of the Following Statements Is True of the Maturity