If an entrepreneur understands a customer’s need but the proposed solution is too expensive, what should the entrepreneur do?
Answer and explanation
Correct answer: Find a cost-effective solution that still meets the need
Understanding the need is only the first part of creating value. The entrepreneur should compare the expected customer benefit with the cost and then redesign the product, process, or delivery method to reduce the price without losing its essential usefulness. A low-cost but effective alternative is better than ignoring the customer, denying the need, or forcing an unaffordable product on them. This approach supports both customer satisfaction and business viability.
Frequently asked questions
What is the correct answer to this question?
Find a cost-effective solution that still meets the need
Why is this the correct answer?
Understanding the need is only the first part of creating value. The entrepreneur should compare the expected customer benefit with the cost and then redesign the product, process, or delivery method to reduce the price without losing its essential usefulness. A low-cost but effective alternative is better than ignoring the customer, denying the need, or forcing an unaffordable product on them. This approach supports both customer satisfaction and business viability.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
