If demand for a product is falling, what should an entrepreneur do first?
Answer and explanation
Correct answer: Collect information from customers and the market to know the reason
A fall in demand may result from changing preferences, price, competition, quality, availability, or economic conditions. The entrepreneur should first collect customer feedback and market information so that the real cause can be identified. Only after diagnosis should corrective action be taken. Immediate dismissals, an untested price rise, or ignoring the issue are unsound responses.
Frequently asked questions
What is the correct answer to this question?
Collect information from customers and the market to know the reason
Why is this the correct answer?
A fall in demand may result from changing preferences, price, competition, quality, availability, or economic conditions. The entrepreneur should first collect customer feedback and market information so that the real cause can be identified. Only after diagnosis should corrective action be taken. Immediate dismissals, an untested price rise, or ignoring the issue are unsound responses.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
