Why is market study done?
Answer and explanation
Correct answer: To understand customers, demand, and competition
Market study gathers information about potential customers, their needs, demand, existing competitors, prices, and market conditions. This information supports decisions about the product, target customers, pricing, and business strategy. It is therefore a preparation and risk-reduction activity. Destroying goods, setting prices without thought, or stopping customers contradicts the purpose of studying a market.
Frequently asked questions
What is the correct answer to this question?
To understand customers, demand, and competition
Why is this the correct answer?
Market study gathers information about potential customers, their needs, demand, existing competitors, prices, and market conditions. This information supports decisions about the product, target customers, pricing, and business strategy. It is therefore a preparation and risk-reduction activity. Destroying goods, setting prices without thought, or stopping customers contradicts the purpose of studying a market.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
