DECA Hospitality and Tourism Cluster Practice Exam

During what phase of a product's life cycle is a business most likely to develop advertising campaigns to remind customers about the product?

1. Obsolescence

2. Decline

3. Introduction

4. Maturity

The correct answer is: Maturity

In the maturity phase of a product's life cycle, a business focuses on maintaining its market share and customer loyalty, as sales growth tends to plateau, and competition often increases. This phase is characterized by a stable demand for the product, but businesses must work to differentiate themselves from competitors. Advertising campaigns during this stage typically aim to remind existing customers about the product's benefits and features while reinforcing brand loyalty. These campaigns can help stimulate continued interest and encourage repeat purchases, ensuring that the product remains relevant in the minds of consumers. In contrast, during the introduction phase, the focus is on raising awareness and encouraging trial among new customers, while the decline phase often sees reduced promotion as the product's relevance diminishes. In the obsolescence phase, advertising is usually minimal, as the demand for the product has significantly decreased or vanished. Therefore, the maturity phase is the most appropriate stage for developing campaigns aimed at reminding customers about the product.