Given below are two statements:
Statement I: The product concept came up when the demand for goods exceeded their supply and selling was no problem.
Statement II: Under the product concept, customers started looking for products which were superior in quality, performance and features.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Statement I is incorrect but Statement II is correct.
Statement I: The product concept came up when the demand for goods exceeded their supply and selling was no problem. — Incorrect. Demand exceeding supply, with selling no problem, is the condition of the production concept. The product concept came later, when supply had increased and mere availability and low price could not ensure sales.
Statement II: Under the product concept, customers started looking for products which were superior in quality, performance and features. — Correct. With more goods in the market, customers started looking for products superior in quality, performance and features. So firms shifted their focus from quantity of production to quality of products.
The production concept stresses availability and low price, while the product concept stresses quality and features.
NCERT (2026-27 Edition): “The Production Concept During the earlier days of industrial revolution, the demand for industrial goods started picking up but the number of producers were limited. As a result, the demand exceeded the supply. Selling was no problem. Anybody who could produce the goods was able to sell. The focus of business activities was, therefore, on production of goods. It was believed that profits could be maximised by producing at large scale, thereby reducing the average cost of production. It was also assumed that consumers would favour those products which were widely available at an affordable price. Thus, availability and affordability of the product were considered to be the key to the success of a firm. Therefore, greater emphasis was placed on improving the production and distribution efficiency of the firms.”
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