Which of the following is true of products in the introductory stage of their life cycle?
A)Their prices will rise dramatically as they move into the specialty goods category.
B)They experience price increases that are cost initiated.
C)Their prices are usually set high.
D)They experience an elastic demand in the core of the market.

Question

Which of the following is true of products in the introductory stage of their life cycle?
A)​Their prices will rise dramatically as they move into the specialty goods category.
B)They experience price increases that are cost initiated.
C)Their prices are usually set high.
D)​They experience an elastic demand in the core of the market.

Quizplus · Accepted Answer

Products in the introductory stage of their life cycle usually have high prices due to the company's investments in research and development, production, and promotion. The high price is intended to recover the costs incurred while developing and launching the product, and to establish the product as a premium offering in the market. However, the price may decrease as the product gains acceptance and competition increases.

Which of the Following Is True of Products in the Introductory