Question

In which stage of the product life cycle does competition become more aggressive with declining prices and profits?

a. decline
b. introduction
c. maturity
d. growth

Answer 1

Competition becomes more aggressive with declining prices and profits during the maturity stage of the product life cycle.

Step-by-step explanation:

The stage of the product life cycle where competition becomes more aggressive with declining prices and profits is the maturity stage. During maturity, most of the consumers who will buy the product have already made their purchases, and new entrants to the market have established their position. This leads to intensified competition, as companies strive to maintain their market share, often resulting in price cuts and increased marketing efforts. Additionally, there are usually fewer opportunities for growth, which can further affect pricing strategies and profitability.