Which describes the prices of products during the introduction stage of the life cycle?
they are generally low because a company wants consumers to try its new product
they are generally average because the company does not know if it is going to need to raise or lower the price
they are generally high because a company must cover the costs of production
a company generally gives the product away at first so people will try it and decide they want to buy it
a?
I agree.
thank you
YW
The correct answer is:
They are generally low because a company wants consumers to try its new product.
During the introduction stage of the product life cycle, companies typically set low prices for their new products. This is done to encourage consumers to try the product and attract them to make a purchase. The reason behind this strategy is that the company aims to build awareness and create a market for the new product. By offering it at a lower price, the company can entice more customers to give it a try and potentially gain their loyalty for future purchases. As the product gains popularity and competition increases, the prices may be adjusted accordingly in the subsequent stages of the life cycle.