The rate of sales decline during the decline stage of the product life cycle is largely governed by which of the following?
A) the number of competitors in the market
B) how rapidly consumer tastes change or substitute products are adopted
C) the intensity of the competition's marketing efforts
D) the amount of money spent on advertising

Question

Quizplus · Accepted Answer

During the decline stage of the product life cycle, sales decline is largely governed by how rapidly consumer tastes change or substitute products are adopted. This is because consumers are now looking for new and innovative products and services. They are no longer interested in the old products and services, and hence, the rate of sales decline becomes high. Competitor's marketing efforts, money spent on advertising, and the number of competitors in the market have a lesser impact on the sales decline during this stage.

The Rate of Sales Decline During the Decline Stage of the Product