Question

The Good Earth Company created a special baby shampoo designed for children 5 years old or younger. The company provided an excellent product manufactured in an environmentally safe plant. Sales flagged as customers turned to shampoos that could be used not only for small children but for people of all ages. What mistake did the Good Earth company make

Answer 1

Answer: b. The company did not define its business in terms of the benefits customers seek.

Explanation:

In order for a business to make money, it needs to provide its customers with what they want not what the company wants the customers to want.

In this scenario, people switched to shampoos that could be used by people of all ages instead of just small children because this is what they wanted but not what the company provided. If the company had defined its business in terms of what their customers wanted, they would have made an all age shampoo which would have been bought.