Before launching a new product, which step is most suitable for understanding customers’ real needs?
Answer and explanation
Correct answer: Conduct market research
Market research collects information about customer problems, preferences, buying behaviour, competing products, and willingness to pay. This evidence helps an entrepreneur test whether a real market exists before committing heavily to production. Increasing output or setting price without research is risky, and ignoring competitors leaves the analysis incomplete. Therefore, conducting market research is correct.
Frequently asked questions
What is the correct answer to this question?
Conduct market research
Why is this the correct answer?
Market research collects information about customer problems, preferences, buying behaviour, competing products, and willingness to pay. This evidence helps an entrepreneur test whether a real market exists before committing heavily to production. Increasing output or setting price without research is risky, and ignoring competitors leaves the analysis incomplete. Therefore, conducting market research is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
