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If an entrepreneur keeps only a low price but service is weak, what risk remains?

Answer and explanation

Correct answer: Customer satisfaction may reduce

The direct answer is A: customer satisfaction may decrease. Price is one part of a customer’s decision, but customers also expect dependable service, fair treatment, timely delivery, useful information and acceptable quality. Step by step: the entrepreneur lowers the price; customers may initially become interested; weak service causes delays, complaints or disappointment; trust falls; some customers may stop returning or recommend competitors. Option A is correct because poor service can reduce satisfaction even when the price is low. Option B is wrong because demand does not always increase; some customers avoid a business with unreliable service. Option C is wrong because lowering price does not automatically improve quality, and weak service may indicate the opposite. Option D is wrong because a business is not automatically safe: low prices can reduce profit and weak service can damage its reputation. The balanced lesson is that price and service must be considered together. Memory cue: cheap alone is not enough; value means price plus quality and service.

Related tags

Home-ScienceEntrepreneurshipCustomer-Satisfaction

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