Certified Supply Chain Professional (CSCP) Practice Exam

What is a defining feature of the maturity stage in the product life cycle?

1. Rapid decline in sales

2. Most profitable stage

3. Initial product launch

4. High market research activity

The correct answer is: Most profitable stage

The defining feature of the maturity stage in the product life cycle is that it is typically the most profitable stage. During this phase, the product has gained widespread acceptance in the market and sales growth begins to stabilize after reaching a peak. This plateau occurs as the product has established a strong customer base, and marketing efforts shift from creating awareness and generating demand to defending market share and enhancing brand loyalty. At this stage, companies can benefit from economies of scale in production and distribution, leading to reduced costs and increased profitability. Additionally, competitors may begin to enter the market, which can push companies to innovate or refine their offerings to maintain a competitive edge, but overall, this stage is characterized by optimized operations and a solidified market presence, contributing to higher profit margins. In contrast, the other options reflect characteristics of different stages in the product life cycle. For example, rapid decline in sales relates to the decline stage, initial product launch refers to the introduction stage, and high market research activity is often more prevalent in the introduction and growth stages as companies seek to understand customer needs and market dynamics.