What happens toward the end of the growth stage of the product life cycle?
A) There is little emphasis on the distribution strategy.
B) Demand for the product is limited to high-income consumers.
C) Profits peak.
D) There is decreased direct competition.

Question

Quizplus · Accepted Answer

During the growth stage of the product life cycle, demand for the product increases and competitors enter the market. However, as the market becomes saturated, the growth rate slows down and eventually reaches a plateau. This is when profits peak before declining in the next stage, maturity. Therefore, the correct choice is C.

What Happens Toward the End of the Growth Stage of the Product