During the first phase of a product life cycle, introduction, which conditions are common? A. Sales are low and expenses are high. B. Expenses are low and sales are high. C. Customers are early adopters.

During the first phase of a product life cycle, introduction, it is common that:

A. Sales are low and expenses are high

Explanation:

The first phase of a product's life cycle in the market is very crucial as it is here that the product gets to meet the public eye and form an impression on them.

The successful products are the ones that get to higher levels of sale by the end of this and start turning profits which is not the case in the beginning at all.

In the beginning the expenses mounted are high and the sale is low and the first phase ends when the products start turning profits.

During the first phase of a product life cycle, introduction, sales are low and expenses are high.

Option: A

Explanation:

When a product firstly introduce into a market, it go through a number of difficulties as it is new one to customer, public are still not aware about its features. So, they are least interested to that particular product and will continue to buy the older product which came before into the market.

Company normally face slight loss in their first production comparatively because here sales are low and expenses are high. For purchasing raw materials, preparing and finally marketing a product needs huge investment of money. But when it comes first into the market it can't grab that much money or earn profit from there because of customer's slow adaptation rate.