During the growth stage consumption increases drastically leading most firms that stocked too few units initially having trouble keeping up with demand- hence major jumps in price can occur due both higher production costs as well as shifts in supply and demand dynamics incentivizing producers/sellers even more. These “crazy prices” also signal newness within certain markets which often interests potential customers creating another incentive for businesses offering these goods (Dahiya3 et al.,2020).

In its maturity phase a product begins experiencing saturation meaning competitors have entered the space either by copying or launching similar versions leading price wars among rivals driving prices down drastically below what they were when introduced – all in attempt to gain greater market share. Sellers may also opt for platform centric pricing models where discounts increase when combined with other services or products; this shift away from traditional one-time purchase methods has been seen increasingly within subscription based business models such as streaming platforms4 .

Finally comes decline – here we see sales decreasing until profit margins become unbearable – leaving many businesses no choice but exit from that particular segment/market entirely. Prices obviously decrease again before halting completely however it should be noted that there are times when customers feel nostalgic towards said items thus preferring them over others regardless of their cost – bringing back an element stability back into pricing structure5 .

In conclusion pricing strategies differ vastly across different stages of a PLC due multiple factors ranging from small changes like inflation rates right up unforeseeable ones like pandemics altering entire industries practically overnight – this is why companies must continually monitor their environment so they can quickly adapt whenever needed (García et al6 , 2021).

References:
1 Robson M J & Windle R L (2019), ‘Managing Product Life Cycles’, Journal Of Marketing Management 30(7-8): 1035–1054 [online] available from https://doi.org/10.1080/0267257X.2018.1481951 [accessed 27th April 2021].
2 Robson M J & Windle R L (n d), ‘Product Life Cycle Analysis'[online] available from http://www2bvmconlineorguk/plc_analysispdf [accessed 27th April 2021].
3 Dahiya N S , Saxena A , Singh B K & Joshi D K (2020), ‘Price Wars: Impact On The Indian FMCG Sector ‘, International Journal Of Business Research And Management 7(2): 3–17 [online] available from https://doiorg/1020447/ijbrmv7il0212 [accessed 28th April 2021]. 4 PriceofBusinesscom Staff n d Subscription Pricing Models As An Alternative To Traditional One Time Payments For Products Or Services [online] available from https://priceofbusinesscom/subscriptionpricingmodelsalternativetotraditionalonetim paymentsforproductsorservices/. 5 Blackstone T 2017 Nostalgia Pricing 101 Understanding Why Customers Don’t Mind Paying More For Old School Brands Forbes Magazine Available online at https//wwwforbescom/sites /travisblackstone/2017programminglanguagehtml#15fece206f0d Accessed 18 March 2020 6 García E Castillo A Almodóvar FJ Rosado ÁL Ibarra JJ Bonilla JA Chamorro B García C Gil JM Jiménez SA Parras JC Ramírez MC Rojas MJ y Tabarés MG 20211 La industria española ante el Covid-19 Una visin desde la diversidad sectorial Documentos de Trabajo del Instituto Valenciano de Investigaciones Econmicas 2101 Revista Española de Estudios Agrosociales y Pesqueros 2997765 DOI101449revespagrosoecol204108