Which of the following is true about the introduction stage of a new product?
A) Profits are typically high.
B) Promotion spending is relatively low.
C) Less money is needed to attract distributors.
D) Companies tend to avoid basic versions of the product.
E) Sales growth tends to be slow.

Question

Quizplus · Accepted Answer

During the introduction stage, sales growth tends to be slow as the product is new and needs to gain awareness and acceptance from the market. Profits are typically low or negative as companies may need to invest heavily in research and development, marketing, and distribution. Promotion spending is typically high as companies try to create awareness and interest in the product. Distributors may also require significant incentives and support to carry the new product. Lastly, companies may offer basic versions of the product to attract early adopters who may be price-sensitive and willing to try new products.

Which of the Following Is True About the Introduction Stage