Question

“Introduction Stage in a product life cycle is not very risky.” Justify either or against.

Answer 1

Against:

1. The introduction stage in a product life cycle is very risky because a large percentage of new products fail at this time. The reasons for product failure are high costs, low sales volume, limited distribution, and exorbitant prices.
2. Prices are usually high due to modest production scales and heavy advertising costs. Consumers’ lack of information and limited distribution contribute to low sales volume growth. As a result, I believe that the introduction stage of a product’s life cycle is very risky.