Question

Identify the correct order of product the cycle stages

Answer 1

• Introduction Stage: In the first stage, the product is introduced in the market and its acceptance is obtained.

• Growth Stage: As the product gains acceptance, demand and sales grow rapidly. Competition increases and prices fall.

• Maturity Stage: During this stage prices and profits fall due to high competitive pressures. Growth rate becomes stable and weak firms are forced to leave the industry.

• Decline Stage: Market peaks and levels off during saturation. Few new customers buy the product and repeat orders disappear.

• Abandonment Stage: Ultimately, the firm abandons the product in order to make better use of its resources.

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