What is the main purpose of market research?
Answer and explanation
Correct answer: Understanding customer needs and preferences
Market research systematically collects and analyses information about customers, competitors, demand, prices, and market conditions. This knowledge helps an entrepreneur design a suitable offering, choose a target group, and make better pricing and promotion decisions. Therefore option A is correct. Hiding products or setting prices without customer information defeats the purpose of research.
Frequently asked questions
What is the correct answer to this question?
Understanding customer needs and preferences
Why is this the correct answer?
Market research systematically collects and analyses information about customers, competitors, demand, prices, and market conditions. This knowledge helps an entrepreneur design a suitable offering, choose a target group, and make better pricing and promotion decisions. Therefore option A is correct. Hiding products or setting prices without customer information defeats the purpose of research.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
