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.
Frequently asked questions
What is the correct answer to this question?
Understanding errors and customer feedback
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Marketing Management. Topic: Product.
