What is the main purpose of market research for an entrepreneur?
Answer and explanation
Correct answer: Understanding customer needs and market demand
Market research collects and analyses information about potential customers, their needs, preferences, buying behaviour, competitors, and demand. Entrepreneurs use these findings to make decisions about the product, price, promotion, and business plan. Choosing a logo, recording attendance, or obtaining a licence may be useful tasks, but they are not the main purpose of market research.
Frequently asked questions
What is the correct answer to this question?
Understanding customer needs and market demand
Why is this the correct answer?
Market research collects and analyses information about potential customers, their needs, preferences, buying behaviour, competitors, and demand. Entrepreneurs use these findings to make decisions about the product, price, promotion, and business plan. Choosing a logo, recording attendance, or obtaining a licence may be useful tasks, but they are not the main purpose of market 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.
