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CMA Final · Entrepreneurship and Startup · Idea to Action

A founder wants to test whether customers will actually pay for a new rural cold-storage booking app before investing in full development. She builds a simple version with only the booking and payment features and releases it to 50 farmers in one district. Which concept does this approach illustrate?

The approach illustrates a minimum viable product. A basic version with only core features is released to a small set of real users to validate paying demand and collect feedback before committing larger development spending, which reduces the risk of building something customers do not want.

  1. AMinimum viable productCorrect
  2. BDiversification strategy
  3. CBackward integration
  4. DProduct line extension

Explanation

A minimum viable product contains only the core features needed to test customer demand and gather feedback at low cost. The founder's limited-feature release to a small group is exactly this. Product line extension and diversification involve broadening an existing offering, which is not the case here.

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