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    Question

    Promotional expenditures at the introduction stage of the product life cycle are spent on:

    A contests and sweepstakes. Correct Answer Incorrect Answer
    B creating selective demand Correct Answer Incorrect Answer
    C creating primary demand Correct Answer Incorrect Answer
    D personal endorsements Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    In the introduction stage there are no competitors with the same product, and heavy promotional expenditures are often made to build primary demand or a desire for the product class (such as food processors or potatoes), rather than for a specific brand. This is done through informational or educational promotions.

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