INTRODUCTION STAGE: The first stage in the product life cycle, characterized by high research and development (R&D) and high production costs. Companies invest heavily in advertising and promotional activities to achieve product and brand name recognition in the minds of the consumers. Profits are usually non-existent and there is a high probability of failure during this initial stage. Product failure can occur if proper market research was not completed prior to development of the product (or service). This lack of research might lead to the development of a product that does not really have a market. Other situations that can cause failure at this stage include: lack of capital, an incomplete/defective product, or poor strategic planning.

     See also | product life cycle | growth stage | maturity stage | decline stage | capital |

INTRODUCTION STAGE, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: April 20, 2024].

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The additional utility obtained from the consumption or use of an additional unit of a good. It is specified as the change in total utility divided by the change in quantity. Marginal utility indicates what each additional unit of a good is worth to a consumer and provides a theoretical basis for understanding market demand and the law of demand. Marginal utility generally declines with increased consumption of a good, a reflection of the law of diminishing marginal utility.

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Today, you are likely to spend a great deal of time watching infomercials hoping to buy either an AC adapter for your CD player or storage boxes for your family photos. Be on the lookout for telephone calls from long-lost relatives.
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