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If customers find a product useful but are unwilling to pay its price, what should the entrepreneur examine first?

Answer and explanation

Correct answer: Pricing and the customer's ability to pay

A product can be useful but still fail commercially if its price is above what the target customers can afford or above the value they perceive. The entrepreneur should examine costs, pricing, customer purchasing power, and possibly different versions or payment methods. Colour, shop music, and uniforms may affect experience, but they do not explain the stated affordability problem.

Related tags

PricingPurchasing PowerCustomer DemandValueIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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