Why is market study important before starting a business?
Answer and explanation
Correct answer: To understand customer needs
Market study provides information about customer needs, preferences, purchasing capacity, competitors, and existing supply. This information helps an entrepreneur choose a suitable product, service, price, and target group. Decorating a shop or impressing friends does not establish whether customers will value and buy the offering.
Frequently asked questions
What is the correct answer to this question?
To understand customer needs
Why is this the correct answer?
Market study provides information about customer needs, preferences, purchasing capacity, competitors, and existing supply. This information helps an entrepreneur choose a suitable product, service, price, and target group. Decorating a shop or impressing friends does not establish whether customers will value and buy the offering.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
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