Question

During which stage of the sales life cycle of a product do sales continue to increase but at a decreasing rate, and competition tends to focus on cost?

-Maturity.
-Decline.
-Inflation.
-Growth.
-Introduction

Answer 1

During the maturity stage of the sales life cycle, sales grow at a decreasing rate and competition focuses on cost reduction. This is often seen in high-tech industries where decreased production costs are achieved through technological improvements and economies of scale.

Step-by-step explanation:

The stage of the sales life cycle of a product where sales continue to increase but at a decreasing rate, and competition tends to focus on cost is the maturity stage. At this point, the market for the product has become saturated, and there is a high level of competition. Companies may benefit from a decreasing cost industry, where as the market expands, expenses for production decline due to factors such as improved technology or increased educational levels of employees, leading to economies of scale. High-tech industries often demonstrate characteristics of a decreasing cost market.

The stage of the sales life cycle of a product where sales continue to increase but at a decreasing rate, and competition tends to focus on cost, is the maturity stage.In this stage, the product has reached its peak level of sales and market penetration. While sales continue to increase, the rate of growth slows down, indicating market saturation.Competition in the maturity stage is driven by cost, as companies aim to attract price-sensitive customers and maintain profitability.