If sales are increasing but customer satisfaction is decreasing, what should an entrepreneur do?
Answer and explanation
Correct answer: Examine quality and service causes
Rising sales may reflect promotion or temporary demand, but falling satisfaction signals a possible problem in product quality, delivery, support, or expectations. The entrepreneur should collect complaints and feedback, inspect the service process, identify the cause, and correct it. More advertising cannot solve an underlying quality problem, while deleting complaints or blaming customers hides evidence and damages long-term relationships.
Frequently asked questions
What is the correct answer to this question?
Examine quality and service causes
Why is this the correct answer?
Rising sales may reflect promotion or temporary demand, but falling satisfaction signals a possible problem in product quality, delivery, support, or expectations. The entrepreneur should collect complaints and feedback, inspect the service process, identify the cause, and correct it. More advertising cannot solve an underlying quality problem, while deleting complaints or blaming customers hides evidence and damages long-term relationships.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
