Most of Stardust Co.’s competitors have left the market because of declining sales. Stardust has introduced new products but has continued producing the old products because a small group of loyal customers still use them. This product-market is in which product life-cycle stage?

Question

Multiple choice question.

Sales decline

Market introduction

Market development

Market growth

Answer 1

The product-market described for Stardust Co. is in the Sales decline stage of the product life cycle. This is indicated by the fact that most of its competitors have exited the market due to declining sales, and while Stardust has introduced new products, it continues to produce the old products only for a small group of loyal customers.