During which stage do sales start to level off and firms may use extension strategies to sustain profits?

During which stage do sales start to level off and firms may use extension strategies to sustain profits?

• A. Growth
• B. Introduction
• C. Decline
• D. Maturity and saturation

Answer: (D)

In the product life cycle, after a period of rapid growth, sales begin to level off as the market becomes saturated. At this point, firms often use extension strategies to sustain profits by reviving demand and extending the product’s life—things like updating features, finding new uses, entering new markets, or running targeted promotions and pricing changes. The aim is to keep sales from stagnating or falling as competitors intensify, until the product eventually moves toward decline. Other stages don’t fit because introduction has slow, uncertain sales; growth has accelerating sales; and decline shows falling sales. So the stage described is maturity and saturation.

In the product life cycle, after a period of rapid growth, sales begin to level off as the market becomes saturated. At this point, firms often use extension strategies to sustain profits by reviving demand and extending the product’s life—things like updating features, finding new uses, entering new markets, or running targeted promotions and pricing changes. The aim is to keep sales from stagnating or falling as competitors intensify, until the product eventually moves toward decline. Other stages don’t fit because introduction has slow, uncertain sales; growth has accelerating sales; and decline shows falling sales. So the stage described is maturity and saturation.