Regarding product life cycles, which of the following is NOT true?
A) Industry profits are likely to level off or decline before sales level off.
B) The level of promotion usually decreases in market maturity since there is less revenue to cover the cost.
C) Many close substitutes are usually competing in the market maturity stage.
D) It is usually expensive for a new firm to enter in the market maturity stage.
E) There is a downward pressure on prices over time.

Question

Quizplus · Accepted Answer

In the market maturity stage, the level of promotion usually increases, not decreases, as companies try to differentiate their products and maintain market share amidst intense competition.

Regarding Product Life Cycles, Which of the Following Is NOT