During the sales decline stage of the product life cycle:
A) firms with strong brands may make profits almost until the end.
B) no profits are earned.
C) price competition usually declines.
D) brand loyalty declines.
E) monopoly is typical.

Question

Quizplus · Accepted Answer

Firms with strong brands may still make profits during the sales decline stage because they have built up brand loyalty and have a certain customer base that is willing to continue purchasing their products, even as sales decline. However, these profits will likely decrease over time as the product becomes outdated and competition increases.

During the Sales Decline Stage of the Product Life Cycle