If customers find a product useful but too expensive, what should an entrepreneur do?
Answer and explanation
Correct answer: Review cost, price, and product features
The feedback shows that the product has perceived usefulness but faces a price barrier. The entrepreneur should examine production and distribution costs, pricing, features, package size, and the target segment, then consider a feasible adjustment or alternative version. Ignoring customers or raising the price without evidence worsens the problem, while immediate closure may discard a workable opportunity.
Frequently asked questions
What is the correct answer to this question?
Review cost, price, and product features
Why is this the correct answer?
The feedback shows that the product has perceived usefulness but faces a price barrier. The entrepreneur should examine production and distribution costs, pricing, features, package size, and the target segment, then consider a feasible adjustment or alternative version. Ignoring customers or raising the price without evidence worsens the problem, while immediate closure may discard a workable opportunity.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
