Which stage comes after maturity and is often associated with a decline in sales?

• A. Introduction
• B. Growth
• C. Maturity
• D. Decline

Answer: (D)

Sales in the product life cycle follow a sequence, and after maturity the next phase is decline. At maturity, sales have reached a peak or plateau as the market becomes saturated and competition tightens. As time passes, demand wanes, substitutes emerge, or consumer interest fades, leading to a noticeable drop in purchases. Profits also tend to shrink because fixed costs are spread over a shrinking volume and discounting may increase to clear inventory. This combination of falling demand and shrinking margins defines the decline stage. By contrast, the introduction phase features low, growing sales as the product enters the market; the growth phase sees accelerating sales as adoption broadens; and maturity involves peak or stabilized sales with intense competition.