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

• A. Market entry by new firms is most frequent
• B. Sales growth slows and competition intensifies
• C. Prices tend to stabilize or decline
• D. Product innovation is at its highest

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.
2. Identify the characteristics of the market maturity stage: this stage is marked by a slowdown in sales growth as the product saturates the market.
3. Recognize that during maturity, competition intensifies because many firms have entered the market, leading to price stabilization or decline due to competitive pressures.
4. Note that market entry by new firms is more frequent during the growth stage rather than maturity, and product innovation tends to peak earlier, often in the growth stage.
5. Conclude that the typical features of the maturity stage include slowing sales growth, intensified competition, and prices stabilizing or declining.