Keeps margins up for a period of time because there is little competition (segment I of the curve is flatter than segment 2 ) and then drops price more rapidly as competition enters later in the life cycle. In pattern A, the product manager reacts twice: first when competition enters (segment 2 is flatter than segment 1) and again when competition drops out (segment 3 is flatter than segment 2 ) .Thus, under this last pricing pattern, margins are high in the early phase of the lift cycle. drop due to competition, and then rise again after a category shakeout occurs.