What is the biggest risk of launching a product without market research?
Answer and explanation
Correct answer: The product may not match the real customer need
Market research provides information about customer needs, preferences, competitors, prices, and buying behaviour. Without it, an entrepreneur may develop a product that solves no important problem, reaches the wrong audience, or is priced poorly. Success, zero cost, or automatic customer growth cannot be assumed without evidence. Therefore, mismatch with real customer need is the main risk.
Frequently asked questions
What is the correct answer to this question?
The product may not match the real customer need
Why is this the correct answer?
Market research provides information about customer needs, preferences, competitors, prices, and buying behaviour. Without it, an entrepreneur may develop a product that solves no important problem, reaches the wrong audience, or is priced poorly. Success, zero cost, or automatic customer growth cannot be assumed without evidence. Therefore, mismatch with real customer need is the main risk.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
