Question

The Product Life Cycle is a theoretical model of what happens to sales and profits for a product over time. The cycle goes through this: 1.Introduction 2.Growth 3.Maturity 4. Decline Question What are examples of companies in the United States that have gone through this cycle.what can a company do to overcome this cycle and how successful have they been? How effective is psychological pricing?

Answer 1

Some of the major companies in US that have gone through product life cycle are:
•   McDonald’s
•   Honda
•   Apple iPod
•   A & W restaurants
•   Ace hardware

All the above mentioned companies have in some way or the other experienced the product life cycle for their some of their particular products and have fought back by introducing a new and a better product in the market.
The company should ensure that a better and a substitute product is introduced in the market when one of the products enters the declining phase, the company should keep on innovating and fulfilling the needs of the people and their customers so as to ensure continual growth. McDonalds have done the above and has been very successful in terms of revenue as well as continuous growth.
Physiological pricing is very effective as people tend to go for products because of this as mentally they feel that the product is cheaper which actually is just $1 cheaper, because of this more number of products are sold and hence the company earns much better revenue.