Question

Paws Corp., a manufacturer of pet products, tries to get a few customers to try out their products. The primary goal of the organization is to get some reference customers that will seed future growth to increase market acceptance. In this case, the organization is in the ___________ stage of the product life cycle.

Answer 1

Paws Corp. is in the Introduction stage of the product life cycle, focused on gaining market acceptance while facing challenges in raising financial capital due to a lack of demonstrated profits.

Step-by-step explanation:

Paws Corp., a manufacturer of pet products, which is actively seeking out a few customers to try their products and establish reference customers, is at the Introduction stage of the product life cycle. During this early stage, companies like Paws Corp. have an idea or a prototype and are seeking to gain market acceptance.

The challenge they face is in raising financial capital because they have yet to demonstrate an ability to earn profits, which makes it hard to provide a rate of return to financial investors. This specified period of time is crucial for research and development to refine the product and make it suitable for a broader customer base.