Which of the following statements could occur in market maturity?
A. Industry sales become stable.
B. Profits can increase for an individual company.
C. Individual firms drop out of the industry.
D. Promotion costs rise.
E. All of the above
Answer: (E) is the correct answer because industry sales do level off in market maturity (A). Profits can increase for a particular company if they have a marketing mix that appeals to consumers (B). (C) is correct because some firms are not efficiently using their product and thus can't compete in the price wars of their more efficient competitors, so they drop out of the industry. Promotion costs rise (D) because firms want to promote their product as different, or they want to remind consumers about the product and its uses to keep sales from falling.