Impetus Solutions developed a technology which enjoyed a successful run in the market for three years. In the last six months however, sales have started decreasing as several other competitors have entered the market and are selling the same product at a cheaper price. This has had an impact on the sales of Impetus. Which stage of the product life cycle is Impetus's product in?
A) introduction
B) growth
C) maturity
D) saturation
E) obsolescence

Question

Quizplus · Accepted Answer

Impetus's product is in the maturity stage of the product life cycle. The product has enjoyed success for three years and has reached a saturation point in the market. However, with increased competition offering cheaper prices, sales have started to decline. This is typical of the maturity stage where sales growth slows down and eventually plateaus.

Impetus Solutions Developed a Technology Which Enjoyed a Successful Run