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What is the main purpose of conducting a market study?

Answer and explanation

Correct answer: To understand customer needs, demand, and competition

A market study gathers and analyses information about customers, their preferences, demand, competitors, prices, and market conditions. This evidence helps an entrepreneur decide what to offer and how to plan production, pricing, and promotion. It does not mean hiding information, selling without preparation, or ignoring costs and other business realities.

Related tags

Market StudyDemand AnalysisCompetitionEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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