Final answer:
In the introductory stage of the product life cycle, a high pricing strategy is typically used, called price skimming. As the product reaches maturity, with increased competition, the price is usually decreased to remain competitive and maintain market share.
Step-by-step explanation:
The question pertains to the strategies for pricing a product at different stages of the product life cycle. During the introductory stage, companies often use a high pricing strategy to recoup the costs of development and to position the product as premium. This strategy is known as price skimming. As competitors enter the market and the product reaches the maturity stage, the strategy commonly shifts to maintaining or decreasing the price in order to remain competitive and retain market share in the face of saturation and competition.
Referring to the information provided, if a product is similar to many others in the market, as mentioned in Chapter 8, a price increase would not be advised since it would lead to a loss of customers and sales. Hence, at the maturity stage, it is generally advisable to lower prices or keep them at a competitive level to maintain market share. This aligns with option 4) high, decrease, signifying a high initial price which later decreases in the maturity stage of the product life cycle.