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A business has a useful product but the target customers cannot afford its price. What is the most appropriate conclusion?

Answer and explanation

Correct answer: Demand evaluation is incomplete

A product can be useful and still fail if the intended customers cannot afford it. Evaluating demand requires more than identifying a need; it also requires studying customers’ purchasing power, acceptable price, and willingness to pay. Therefore, option B is correct because the demand assessment is incomplete. Usefulness alone does not guarantee success, and the situation says nothing about advertising or the end of competition.

Related tags

AffordabilityDemand EvaluationCustomer AnalysisPricingIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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