Certified Supply Chain Professional (CSCP) Practice Exam

What characterizes the development stage in the product life cycle?

1. High sales volume

2. No sales

3. Stability in the market

4. Increased competition

The correct answer is: No sales

The development stage in the product life cycle is characterized by no sales because this phase involves the research, design, and creation of the product before it is launched into the market. During this time, significant resources are invested in product development, including time and capital, but a tangible product is not yet available for consumers, therefore, no sales occur. This stage focuses on creating a product that meets consumer needs, conducting market research, and possibly testing prototypes. It sets the foundation for the product's eventual entry into the market, which occurs during the introduction phase that follows. In contrast to the development stage, high sales volume typically signifies a later phase in the product life cycle, such as growth. Stability in the market may suggest a mature product that has been well established, and increased competition is usually seen in later stages, as more providers enter the market once a product has demonstrated success.