Which of the following best describes the decline stage of a product's life cycle?

The decline stage of a product's life cycle is characterized by a reduction in market share and profitability. During this phase, sales begin to fall consistently as consumer interest wanes. Factors that contribute to this decline can include changes in consumer preferences, advancements in technology leading to new alternatives, or market saturation where the product no longer attracts new customers.

As the market contracts, companies often experience decreased revenues which subsequently affects profitability. Businesses may respond by divesting from the product, reducing marketing efforts, or making strategic decisions about whether to phase out the product entirely. Recognizing this decline is crucial for businesses to adapt their strategies effectively and consider potential exit strategies or rejuvenation options for the product line.