Select all that applyWhat are key characteristics of the introduction stage? (Choose every correct answer.)Multiple select question.Start-up costs are highSales are highBuyers are abundantProfits are lowPrice competition is fierce
Question
Select all that applyWhat are key characteristics of the introduction stage? (Choose every correct answer.)Multiple select question.Start-up costs are highSales are highBuyers are abundantProfits are lowPrice competition is fierce
Solution
The key characteristics of the introduction stage are:
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Start-up costs are high: This is because the company is just starting out and needs to invest in research and development, marketing, and distribution.
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Sales are low: At this stage, the product is new to the market, so sales are typically low until consumers become aware of the product.
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Buyers are not abundant: Since the product is new, there are not many buyers. It takes time for consumers to become aware of and accept new products.
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Profits are low: Due to high start-up costs and low sales, profits are usually low in the introduction stage.
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Price competition is not fierce: Since there are not many competitors in the market at this stage, there is usually not much price competition.
So, the correct answers are "Start-up costs are high" and "Profits are low".
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