Why is local market study done?
Answer and explanation
Correct answer: To understand customer needs and competition
Studying a local market helps an entrepreneur learn about potential customers, their needs, purchasing capacity, existing sellers, prices, and competing products. This information supports decisions about product design, location, pricing, and promotion. Therefore option A is correct; the other choices represent poor or uninformed planning.
Frequently asked questions
What is the correct answer to this question?
To understand customer needs and competition
Why is this the correct answer?
Studying a local market helps an entrepreneur learn about potential customers, their needs, purchasing capacity, existing sellers, prices, and competing products. This information supports decisions about product design, location, pricing, and promotion. Therefore option A is correct; the other choices represent poor or uninformed planning.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
