Which of the Following Statements About the Introduction Stage of the Product

question 6

Multiple Choice

Which of the following statements about the introduction stage of the product life cycle is most accurate?

• A) If a firm's product is especially good, efforts should be made to create selective demand rather than primary demand in order to allow the firm to distinguish itself from competitors.
• B) During the introduction stage, it is best to avoid a skimming pricing strategy.
• C) During the introduction stage, it is best to avoid a penetration pricing strategy.
• D) A firm should introduce the identical product at several different price points in order to gauge customer price sensitivity.
• E) Because of large initial investment costs, industry profits often must go from negative to positive.