Prices usually need to be reduced in the _____ stage of the product life cycle due to increased competition.

Question

Quizplus · Accepted Answer

In the maturity stage of the product life cycle, the market becomes saturated and competition increases, leading to price reductions in order to maintain market share and sales. In contrast, the introduction stage often requires higher prices to recoup the costs of product development and market entry, while the growth stage may see stable or slightly increased prices as demand and production levels increase. The decline stage may also see price reductions, but this is often due to decreased demand and the need to clear out inventory rather than increased competition. The commercialization stage is not typically considered part of the product life cycle.

Prices Usually Need to Be Reduced in the _____ Stage