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An entrepreneur asks customers whether they want to protect the environment and most say yes. Why does this not prove actual demand for a green product?

Answer and explanation

Correct answer: Because the response may be socially desirable while purchase behaviour differs

People may give an environmentally positive answer because it sounds responsible, yet their actual purchase may depend on price, convenience, performance, and trust. This is called a gap between stated preference and behaviour. The entrepreneur should test willingness to pay, trial use, pre-orders, or real purchases rather than relying on a general opinion question.

Related tags

Green ProductDemand ValidationIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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