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An entrepreneur tests a new product with a limited group of customers before selling it widely. What is the main purpose?

Answer and explanation

Correct answer: Understanding errors and customer feedback

A limited market test allows the entrepreneur to observe how customers use and evaluate the product before committing large amounts of money. Feedback can reveal defects, confusing features, or unmet needs, so changes can be made early. Testing does not aim to stop profit, eliminate competition, or avoid taxes.

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PrototypeCustomer-FeedbackProductMarketing ManagementBusiness StudiesClass 12 Mcq

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