Pricing Decisions with Regard to Product Life Cycle

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Pricing Decisions
A product life cycle refers to stages that a product goes through from when it is manufactured until it is declined or only when it is eliminated from the market. The product life cycle has four stages: development, growth, maturity, and decline. The development stage of a product is when a new product enters the market, and there is a proven need for it, but sales are still low and adapting along slowly. The second stage of growth entails when the product's demand starts rising, and sales go up steadily. Thirdly in the maturity stage, the demand for the product starts to level up and grow at the replacement of the product. Lastly, the decline stage is when the product's sales start going reducing steadily because its demand has gone down. An example here is when cotton paved the way for nylon products (Zhang et al. 26).
During the development period, the product is still struggling in the market. You might need to lower your price against that of competitors just to convince consumers to buy your product. In the growth stage, the product is st...