Why is depending only on friends’ opinions a weak method of market research for an entrepreneur?
Answer and explanation
Correct answer: Because it does not fully represent real customers
Friends may differ from the intended market in age, income, preferences, buying behaviour, and willingness to pay. Their opinions can provide an initial clue, but a small and possibly biased group cannot represent all prospective customers. Better research uses relevant, diverse respondents and, where possible, observes actual behaviour as well as stated opinions.
Frequently asked questions
What is the correct answer to this question?
Because it does not fully represent real customers
Why is this the correct answer?
Friends may differ from the intended market in age, income, preferences, buying behaviour, and willingness to pay. Their opinions can provide an initial clue, but a small and possibly biased group cannot represent all prospective customers. Better research uses relevant, diverse respondents and, where possible, observes actual behaviour as well as stated opinions.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
