The Lack of Profit in the Introductory Stage of the Product

question 107

Multiple Choice

The lack of profit in the introductory stage of the product life cycle is very often the result of

• A) pricing the product too low in an attempt to quickly gain market share.
• B) targeting the wrong target market segment.
• C) a lack of wholesaler support.
• D) the large investment costs in product development.
• E) ineffective execution of the marketing program.

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Definitions:

Operations

Basic mathematical procedures such as addition, subtraction, multiplication, and division.

Fractions

Numerical quantities that represent a part of a whole, usually written with a numerator and a denominator.

Multiply

The mathematical operation of increasing one number by another number, essentially repeated addition.

Simplify

To alter a mathematical expression or equation to make it easier to understand or work with by reducing it to its most basic form.