Final answer:
True, information promotion is heavily emphasized in the early stages of the product life cycle to build awareness and interest in a new product. Advertisements must be factual as regulated by the FTC, observing the principle of 'let the buyer beware.'
Step-by-step explanation:
True: Information promotion is more common in the early stages of the product life cycle. In the initial phases of a product's life, such as the introduction and growth stages, companies invest heavily in promotion to build awareness and interest in their new product. This promotional effort involves factual claims about the product's performance, which are regulated by institutions like the Federal Trade Commission to ensure that advertisements are not misleading. While not all exaggeration is prohibited, companies cannot present untrue "facts" in their advertising, adhering to the principle of Caveat emptor ("let the buyer beware"). The investment in promotion at this stage is essential for the product's initial uptake and eventual success, providing an impetus for the company to focus on research and development that may benefit many. It's a critical period where the goal is to make potential customers aware of the new product and to differentiate it from competitors.