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InterviewSolution
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Explain the maturity stage and abandonment stage of product life cycle. |
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Answer» (i) Maturity Stage : In maturity stage prices of the product fall and profits also fall due to high competitive pressures. Growth rate becomes stable and weak firms are forced to leave the industry. Heavy expenditure is incurred on promotion to create brand loyalty. Firms try to modify and improve the product, to develop new uses to the product and to attract new customers in order to increase sales. (ii) Abandonment Stage : This is the final stage of the product life cycle. In this stage, the firm abandons the product in order to make better use of its resources. As preferences of customers change, new and more innovative products replace the abandoned product. When the decline is fast, the product is abandoned by the firm. New products with unique features may be introduced. Some firms cannot bear the loss and sell out and discontinue the product. |
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