Which of the following statements is true regarding the introduction stage of the product life cycle?
A)It is marked by a rapid growth in industry sales and also an increase in the number of competitors.
B)At this stage, firms attempt to reach new customers by studying their preferences and producing different product variations.
C)It usually starts with a single firm, and innovators form the main category of buyers.
D)It is characterized by intense competition for market share by firms, which leads to an increase in marketing costs.
E)It is marked by a growing number of product adopters and also an increase in the number of product versions available.

Question

Quizplus · Accepted Answer

The introduction stage usually starts with a single firm bringing a new product to the market, and during this stage, innovators form the main category of buyers. Option A is incorrect because the rapid growth in industry sales and an increase in competitors usually occur during the growth stage. Option B is incorrect because firms try to reach new customers by producing different product variations during the growth and maturity stages. Option D is incorrect because competition for market share usually intensifies during the growth and maturity stages, not the introduction stage. Option E is incorrect because a growing number of product adopters and a variety of product versions available usually occur during the growth and maturity stages.

Which of the Following Statements Is True Regarding the Introduction