📚 Learning Guide
Business Analysis Techniques
easy

If a business is consistently missing its revenue targets, which of the following is the most likely underlying cause that a business analyst should investigate?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
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Choose the Best Answer

A

Ineffective marketing strategies

B

High employee morale

C

Increased customer loyalty

D

Streamlined operations

Understanding the Answer

Let's break down why this is correct

Answer

If a business keeps missing its revenue targets, the most common culprit is that the product or service isn’t meeting market demand or isn’t priced right, so customers aren’t buying enough. A business analyst should first examine sales data and customer feedback to see if the target audience is actually interested or if competitors are offering better value. They should also review pricing, marketing spend, and the sales funnel to identify any gaps between what the business offers and what customers want. For example, if a software company sees high trial sign‑ups but low paid conversions, the analyst might discover the pricing tier is too high for the intended market, causing lost revenue.

Detailed Explanation

When marketing efforts are weak, fewer people know about the product, so fewer sales happen. Other options are incorrect because High employee morale helps the team, but it does not stop customers from buying or not buying; Loyal customers usually buy more, which usually raises revenue.

Key Concepts

Business Analysis Techniques
Revenue Management
Marketing Strategies
Topic

Business Analysis Techniques

Difficulty

easy level question

Cognitive Level

understand

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