Ear Check Inc. develops a new ear examination kit that allows customers to check their children for ear infections at home, rather than go to the doctor. Currently, this product is experiencing negative profits, and the company is spending a great deal of money on advertising to make consumers aware of the product. As a result, this product is most likely in the ________ stage of the product life cycle.
A) growth
B) decline
C) introductory
D) maturity
E) intermediate

Question

Quizplus · Accepted Answer

Since this product is experiencing negative profits and the company is spending a great deal of money on advertising to make consumers aware of the product, the product is most likely in the introductory stage of the product life cycle. In the introductory stage, consumer awareness and acceptance of a product are limited, sales are zero, and profits are negative.