In which situation should an entrepreneur consider changing the target customer segment?
Answer and explanation
Correct answer: When current customers do not understand the product value at all
A target segment should contain people who have the relevant need and can understand and value the proposed solution. If research repeatedly shows that the current group does not recognise the benefit, the entrepreneur may improve the product or examine a better-matched segment. Shop colour, a long name, or personal boredom is not reliable evidence of poor market fit.
Frequently asked questions
What is the correct answer to this question?
When current customers do not understand the product value at all
Why is this the correct answer?
A target segment should contain people who have the relevant need and can understand and value the proposed solution. If research repeatedly shows that the current group does not recognise the benefit, the entrepreneur may improve the product or examine a better-matched segment. Shop colour, a long name, or personal boredom is not reliable evidence of poor market fit.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
