Certified Supply Chain Professional (CSCP) Practice Exam

What is an indicator of the introduction stage of a product life cycle?

1. High market penetration

2. Low sales

3. Increased production costs

4. Strong customer loyalty

The correct answer is: Low sales

In the introduction stage of a product life cycle, the key characteristic is low sales. This stage marks the launch of a new product into the market. During this period, consumer awareness is being built, and the product is still gaining traction. As a result, sales figures are typically low because potential customers may not yet be familiar with the product or its value proposition. This stage often involves significant investment in marketing efforts to promote the product and drive awareness, which can lead to high production or marketing costs. However, despite these costs, sales volumes do not climb significantly at this point. It is also common for customer loyalty to be undeveloped during this introduction phase, as consumers are still exploring options and may not have had enough experience with the new product to form a strong attachment to it. Therefore, low sales are a clear indicator that a product is still in its introduction stage, highlighting the focus on building market presence rather than achieving high penetration or established brand loyalty.