What may happen if an entrepreneur does not understand changing customer needs?
Answer and explanation
Correct answer: Product may become irrelevant
Customer preferences, technology, income, lifestyles, and competing alternatives can change over time. If an enterprise continues offering the same thing without learning from these changes, its product may no longer solve an important problem or provide enough value. Demand and profit can then decline. Customer growth and secure profit are not automatic, and markets do not remain unchanged.
Frequently asked questions
What is the correct answer to this question?
Product may become irrelevant
Why is this the correct answer?
Customer preferences, technology, income, lifestyles, and competing alternatives can change over time. If an enterprise continues offering the same thing without learning from these changes, its product may no longer solve an important problem or provide enough value. Demand and profit can then decline. Customer growth and secure profit are not automatic, and markets do not remain unchanged.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
