During which stage of the product life cycle does a product typically experience its peak sales?

The maturity stage of the product life cycle is characterized by a period in which a product reaches its peak sales volume. At this stage, the product has already established a strong presence in the market, and sales grow at a slower, more stable rate following the rapid growth experienced in the previous stage. This stability is often attributed to most potential customers having already adopted the product, leading to a saturation point in the market.

Companies typically focus on differentiation and maintaining their market share during the maturity stage, as the competition tends to intensify. While innovation and improvements may still occur, many businesses concentrate on optimizing profits and addressing customer retention at this phase.

In contrast, the introduction stage is marked by low sales and high costs due to product launch expenses. The growth stage sees increasing sales as the product gains traction, but it is ultimately the maturity stage where sales volumes stabilize and reach their highest point before entering the decline stage. Hence, peak sales are indicative of the maturity stage's critical role in the product life cycle.