Which of the following is true of products in the introduction stage of their life cycle?
a. Their prices will rise dramatically as they move into the specialty goods category.
b. They experience price increases that are cost initiated.
c. Their prices are usually set high.
d. They experience an elastic demand in the core of the market.
ANSWER: c
Management usually sets prices high during the introductory stage. One reason is that it hopes to recover its development costs quickly.
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