What happens to prices in the Maturity Stage?

In the Maturity Stage of the product life cycle, prices typically experience downward pressure. This is primarily due to increased competition as multiple companies offer similar products. As the market becomes saturated, businesses often reduce prices to maintain their market share and attract price-sensitive customers. This price competition results in a decrease in the profit margins for many marketers.

While companies may attempt to differentiate their products or add value in order to justify higher prices, the overall trend in this stage is toward decreased pricing as firms strive to maintain their positions in a crowded marketplace. Thus, the notion that prices are driven down significantly aligns with the typical characteristics of the Maturity Stage.