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Question
“Introduction Stage in a product life cycle is not very risky.” Justify either or against.
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Solution
Against:
- 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.
- 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.
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