Solving a customer's specific problem instead of only selling the same product at a lower price is an example of what?
Answer and explanation
Correct answer: Value proposition
A value proposition explains the meaningful benefit and solution an enterprise offers to a particular customer. Addressing a specific problem shows why the offering is useful and why a customer may choose it, even when the business is not competing only through a lower price. A cash discount changes payment terms, storage concerns inventory, and tax payment is a compliance activity, so none expresses the central customer value.
Frequently asked questions
What is the correct answer to this question?
Value proposition
Why is this the correct answer?
A value proposition explains the meaningful benefit and solution an enterprise offers to a particular customer. Addressing a specific problem shows why the offering is useful and why a customer may choose it, even when the business is not competing only through a lower price. A cash discount changes payment terms, storage concerns inventory, and tax payment is a compliance activity, so none expresses the central customer value.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
