The term "usability testing" in product development refers to the evaluation of a product's user experience by observing real users as they interact with it. This process aims to identify usability issues, assess how well the product meets user needs, and gather feedback on design and functionality. Usability testing is crucial for ensuring a product is intuitive, accessible, and effective. By incorporating user insights, developers can refine products to enhance satisfaction and efficiency, ultimately leading to better adoption rates.