Many Believe That Customer Focus Does Not Help to Create

question 23

Multiple Choice

Many believe that customer focus does not help to create better or new products. This belief rests on which of the following ideas?

• A) Such new product developments decrease the chances of success.
• B) Customers do not consider the cost of design when suggesting.
• C) Customers are at times unaware of what they really want.
• D) It increases the cost of testing a product or service.
• E) Having too much customer focus leads to a negative brand image.

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Definitions:

Subsidy

A financial contribution granted by a government or organization to support a business, industry, or activity, making it more affordable or viable.

Market Equilibrium

A state in the market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price for a good or service.

Socially Optimal Level

A state in which resources are allocated in the most efficient way possible, maximizing societal welfare or benefit.

Positive Externalities

Benefits experienced by third-parties or the society at large due to an economic activity, not directly involved in the transaction, such as education or vaccination.