At the maturity stage of the product life cycle, sales slow as competi

QUESTION

At the maturity stage of the product life cycle, sales slow as competition makes inroads, and managers need to concentrate on reducing costs in an effort to maintain the product’s profitability.

Indicate whether the statement is true or false.

ANSWER

Answer: TRUE
Explanation: The maturity stage is the period in which the product starts to fall out of favor and sales and profits start to level off. In this phase, sales slow as competition makes inroads. At this point, managers need to concentrate on reducing costs and instituting efficiencies to maintain the product’s profitability. Sometimes they can extend the life of the product by tinkering with its various features.