Questions: Heavy costs are associated with the stage of the product life cycle.
maturity
introduction
decline
downsizing
growth
Transcript text: Heavy costs are associated with the $\qquad$ stage of the product life cycle.
maturity
introduction
decline
downsizing
growth
Solution
The answer is: introduction.
Explanation for each option:
Maturity: During the maturity stage, the product is well-established in the market, and the focus is on maintaining market share and extending the product's life cycle. Costs are generally lower compared to the introduction stage because the product has already been developed and launched.
Introduction: This is the correct answer. The introduction stage involves significant costs due to research and development, production setup, marketing, and promotional activities to create awareness and encourage initial adoption. These initial investments are necessary to establish the product in the market.
Decline: In the decline stage, the product's sales and profitability decrease. Companies may reduce costs by cutting back on marketing and production, or they may decide to discontinue the product altogether. Costs are generally lower compared to the introduction stage.
Downsizing: This term is not typically used to describe a stage in the product life cycle. Downsizing usually refers to reducing the size or scope of a company's operations, which can occur at any stage of the product life cycle.
Growth: During the growth stage, the product gains market acceptance, and sales increase rapidly. While there are costs associated with scaling up production and marketing, these are generally offset by increasing revenues. The costs are not as high as in the introduction stage.
In summary, the introduction stage is associated with the heaviest costs due to the initial investments required to bring a new product to market.