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.
Frequently asked questions
What is the correct answer to this question?
To understand customer needs, demand, and competition
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
