Chapter 11, Problem 20AA

To determine

To discuss: The cycle the new product will go through when testing in the market.

Answer to Problem 20AA

The first phase of the product life cycle, the development phase is where the product is tested in the market.

Explanation of Solution

The first part of Product Life Cycle which includes not only developing the product but also carrying out research and testing activities is the Development phase. Market research is an important part when testing product in the market as it gives essential data for analyzing the potential acceptability and growth of a product and building a proper business model.

Getting feedback from test users and testing the product is necessary for the development of the product. It gives information needed to make the product better suited to meet consumer needs.

Once the development phase is over, the product is ready to enter the market and head towards introduction phase.

Economics Concept Introduction

Introduction:

Product Life Cycle- It is the stages that a product goes through in its entire life cycle from research and development to decline. It comprises five primary stages which are development, introduction, growth, maturity and decline.