Which of the following is true of products in the introduction 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

Quizplus · Accepted Answer

In the introduction stage of a product's life cycle, its prices are usually set high to cover the costs of research and development, production, and marketing. This is because the company may not have established economies of scale yet, and the demand for the product may be uncertain. Pricing high allows the company to recoup its initial investment and, if successful, generate profits.

Which of the Following Is True of Products in the Introduction