If an entrepreneur only copies a competitor and offers no different value, what is the biggest risk?
Answer and explanation
Correct answer: Failing to create a distinct identity for customers
When competing offerings appear identical, customers have little reason to choose the new venture or remain loyal to it. A clear difference in quality, convenience, service, design, price, or another valued feature can create a distinct position. Copying does not automatically increase profit, improve quality, or remove business risk.
Frequently asked questions
What is the correct answer to this question?
Failing to create a distinct identity for customers
Why is this the correct answer?
When competing offerings appear identical, customers have little reason to choose the new venture or remain loyal to it. A clear difference in quality, convenience, service, design, price, or another valued feature can create a distinct position. Copying does not automatically increase profit, improve quality, or remove business risk.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Marketing Management. Topic: Product.
