Which of the following typically occur in the market maturity stage of the product life cycle?

• A. Advertising expenditures decrease and firms focus on differentiation
• B. Product innovation is at its peak and prices are high
• C. Sales growth slows and competition intensifies
• D. Market entry by new firms is most frequent

Answer: (C)

Verified step by step guidance

1. Understand the concept of the product life cycle, which includes stages such as introduction, growth, maturity, and decline, each characterized by different market behaviors.
2. Identify the characteristics of the maturity stage: sales growth slows down, competition becomes more intense, and firms often focus on differentiating their products rather than innovating radically.
3. Recognize that during the maturity stage, advertising expenditures typically decrease or shift focus from awareness to differentiation, as the market is more saturated.
4. Note that product innovation is usually at its peak during the growth stage, not maturity, and prices tend to stabilize or decrease due to competition in maturity.
5. Understand that market entry by new firms is most frequent during the growth stage when the market is expanding, rather than in the maturity stage when growth slows.