Which of the following characterizes the decline stage of the product life cycle?
A) New and improved models are sold at high price points.
B) Attractive price points are set to gain market share and discourage competitors.
C) Established competition makes price pressures more pronounced, forcing lower-price strategy if product not well-differentiated.
D) Significant price pressures come from competitors and consumers.
E) Existing models or earlier generations move down in price.

Question

Quizplus · Accepted Answer

In the decline stage of the product life cycle, significant price pressures come from competitors and consumers as the product loses its popularity and market share. This can lead to price wars and a need for aggressive pricing strategies to maintain sales. The other options describe strategies that may be used in other stages of the product life cycle.

Which of the Following Characterizes the Decline Stage of the Product