THE INTRODUCTORY STAGE OF THE PRODUCT LIFE CYCLE AND PRODUCT VIABILITY (A SURVEY OF “BORROW ME CREDIT” PRODUCT)

ABSTRACT

This study was designed to evaluate the relationship between The Introductory Stage of the Product Life Cycle and Product Viability. The objective is to empirically determine the level and direction of the key decisions during the introduction of a new product and the long term profitable survival of the product. Among others, advertising, pricing and product quality were the key decision (variables) focused on in this research work and the dependent variable; product viability was measured using the Reputation Quotient by Fombrun. Given that the product of choice is one with a wide spread across the nation, the population of the study was not determined. However, the sample size was purposively selected to be large enough for generalizations to be made. The data collected were analyzed using Statistical Package for Social Science (SPSS) 16.0. Regression and Correlation were run and the results revealed that there are significant relationships between product viability and advertising effectiveness, product quality and the introductory price. It is recommended that at the introductory stage of a product cycle, the innovating firm should embark on massive promotional activities, provide good quality (value) for customer’s wealth and fix an affordable price for the product that would not sacrifice the long term growth and profit of the product. Also, the fixed price rate should be affordable by the target market.