Question

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

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

Answer 1

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

Step-by-step explanation:

In the product life cycle, competition becomes more aggressive with declining prices and profits in the decline stage. During this stage, sales and market share decrease, leading to intensified competition for the remaining customers. As products become outdated or face saturation in the market, companies may intensify competition through various strategies to capture the remaining market demand.

Competitors may engage in price wars to attract customers, resulting in declining prices and profits. Examples of products in the decline stage include typewriters and film cameras.

Therefore, the correct answer is c. decline.