This page contains the entrepreneurship class 11 cbse book chapter/unit Concept of Market Researching the Market notes where in the questions/answers/solutions for this chapter/unit 5 (C) are covered.
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Very Short Answers
Question Q.1.(i)
Q.1.(i) What is ‘Market research’?
Answer Q.1.(i)
Market research is the systematic study and evaluation of all factors affecting business operations.
Question Q.1.(ii)
Q.1.(ii) What is ‘Market Survey‟?
Answer Q.1.(ii)
Market survey is an organised and in-depth method of collecting information directly from sources.
Short Answers
Question Q.2.(i)
Q.2.(i) To be characterized as “good” market information, enlist any four essential characteristics to be possessed by it.
Answer Q.2.(i)
Good market information should possess the following characteristics:
1.
Clarity– The information should be clear and easy to understand.
2.
Completeness– It should be complete in all respects and should not leave out important facts.
3.
Relevance– The information should be related to the purpose for which it is collected.
4.
Accuracy– It should be correct and free from mistakes so that proper decisions can be taken.
Other qualities like confidentiality, authenticity, economy, precision, reliability, objectivity, punctuality, and strategic value can also be characterized as “good” market information.
Question Q.2.(ii)
Q.2.(ii) Define ‘Research Instruments’.
Answer Q.2.(ii)
Research instruments are the tools used by entrepreneurs for collecting information in a systematic way. One of the most important and commonly used research instruments is the market survey, which helps in extracting information directly from the sources for the first time.
Question Q.2.(iii)
Q.2.(iii) Give one major difference between ‘Market Research and Market Survey’.
Answer Q.2.(iii)
The main difference is that market research is a wider concept, while market survey is only one method or technique used in market research. Market research means the systematic study and evaluation of all factors affecting business operations, whereas market survey is used mainly for collecting primary data directly from sources.
Question Q.2.(iv)
Q.2.(iv) List the types of market survey conducted to extent information.
Answer Q.2.(iv)
There are two types of market survey conducted to extract information:
1.
Census survey
2.
Sample survey
The objective of both is to produce information with required accuracy, within the planned time, and at minimum cost.
Very Long Answers
Question Q.3.(i)
Q.3.(i) State the main steps involved in Marketing Research.
Answer Q.3.(i)
The main steps involved in marketing research are as follows:
Step 1:
Defining the marketing problem: First, the entrepreneur identifies the marketing problem to be tackled and clearly defines the research problem.
Step 2:
Specifying the information requirement: In this step, a list of the needed information is prepared.
Step 3:
Developing the research design and procedure: The researcher decides whether the required information is already available in company records or outside sources.
Step 4:
Collecting information: The research instrument is selected, and the sample type and sample size are decided.
Step 5:
Analysing and interpreting information: The collected information is analysed and interpreted in relation to the problem.
Step 6:
Summarising the findings: The important findings are arranged in a clear form.
Step 7:
Preparing the research report: Finally, the research report is prepared and presented.
Question Q.3.(ii)
Q.3.(ii) Explain Marketing survey along with the methods of conducting the same.
Answer Q.3.(ii)
A market survey is an organised and in-depth way of collecting information directly from the original sources. It is one of the most commonly used research instruments by entrepreneurs for gathering information and responses from people. Its purpose is to obtain reliable market facts which can help the entrepreneur in planning, decision-making, and understanding customers better.
The following methods are used for conducting a market survey:
1.
Personal interviews– direct face-to-face interaction with respondents.
2.
Telephonic interviews– collecting information over the phone.
3.
Direct mail interviews– sending questions through post.
4.
E-mail interviews– gathering responses through e-mail.
5.
Online interviews– using internet-based communication.
6.
Questionnaire development– preparing structured questions for collecting data.
7.
Field work– direct collection of information from the market.
Thus, market survey is an important practical tool for collecting first-hand market information.
Question Q.3.(iii)
Q.3.(iii) What role is played by ‘Marketing Research’?
Answer Q.3.(iii)
Marketing research plays a very important role in business because it applies the scientific method to marketing problems. No method can completely remove uncertainty, but a scientific method can reduce the uncertainty caused by lack of information. In this way, it reduces the danger of making a wrong choice between alternative courses of action.
Marketing research also gives importance to objectivity, accuracy in measurement, and exhaustive investigation. It requires the use of valid and reliable research methods and instruments.
So, marketing research helps the entrepreneur in identifying the real problem, collecting useful information, analysing market conditions, making better decisions, reducing risk, and improving the chances of success. It supports the entrepreneur in understanding customers, competition, and market opportunities in a more systematic and dependable manner.
Question Q.3.(iv)
Q.3.(iv) Market survey can be used as a tool for betterment of Society. To conduct a fair survey, list 4 strong values of a surveyor.
Answer Q.3.(iv)
To conduct a fair survey, a surveyor should possess strong values. Four important values are:
1.
Innovation and creativity– A surveyor should think in new ways and design better methods of collecting useful information.
2.
Independence or self-reliance– The surveyor should work honestly and independently, without bias or outside pressure.
3.
Respect for work– The surveyor should value the work seriously and perform it sincerely and carefully.
4.
Quest for outstanding performance or achievement orientation– The surveyor should aim for accuracy, quality, and better results in the survey process.
These values are important because a market survey affects decision-making and can also be used for the betterment of society. So, the surveyor must be fair, sincere, responsible, and committed to truthful work.
Very Long Answer Questions
Question Q.4.(i)
Q.4.(i) Discuss the steps involved in conducting the market survey.
Answer Q.4.(i)
A normal way of conducting a market survey consists of four main steps.
Step 1:
Planning the Survey: First, the entrepreneur must decide what exactly he or she wants to know about the market. This requires clearly defining the problem, selecting the most appropriate method of survey such as personal interview or telephonic interview, deciding the area and extent of the study, and choosing whether it will be a census survey or a sample survey. An important part of this stage is questionnaire development. The questionnaire should be based on the objectives, should not be too complicated, and must be properly worded.
Step 2:
Field Work: Field work requires managerial, administrative, and research skills. The entrepreneur should ensure that investigators are properly trained, the work is supervised, the time schedule is followed, responses are honestly and accurately recorded, and the collection of data is done carefully.
Step 3:
Analysis and Interpretation of Data: The raw data must be edited, tabulated, processed, and interpreted. Statistical analysis may also be done. If required, expert advice should be taken.
Step 4:
Report Making: Finally, findings and recommendations are summarized in a report. This final report becomes the basis for entrepreneurial decision-making.
Question Q.4.(ii)
Q.4.(ii) “Market Survey” is an useless expensive tool”. – Do you agree with the statement? Should it be dispense away with? Support your answer with reasons.
Answer Q.4.(ii)
No, I do not agree with the statement that market survey is a useless expensive tool. A market survey is actually a very useful and practical instrument for entrepreneurs. Market survey is one of the most widely used market research techniques and is used for collecting primary data directly from the source when such information is not available in company records or published sources.
It should not be dispensed away with, because it plays an important role in business decision-making. The basic objective of market survey is to collect information on various aspects of business. It helps the entrepreneur understand the customer’s needs, wants, likes, dislikes, and demand patterns. This is why it is said that the “Customer is the King.”
A market survey also helps in risk reduction because decisions are taken after careful analysis instead of guesswork. It supports the entrepreneur in attaining objectives, gives an overview of the market, provides better sales forecasts, and facilitates decision-making in areas such as pricing, packaging, and distribution.
Therefore, a market survey is not a useless expense. Rather, it is an investment in correct information. Without it, business decisions may be based only on assumptions, which can be more costly and risky in the long run.
Question Q.4.(iii)
Q.4.(iii) Lalit Mesgs is planning to launch a new female clothing store. Draft a survey, not exceeding 10 questions as to collect some information that will be helpful in launching of this store.
Answer Q.4.(iii)
A market survey should help the entrepreneur understand customer needs, preferences, price expectations, and buying behaviour. For launching a female clothing store, the following survey questions can be useful:
1.
What is your age group?
a)
Below 18
b)
18–25
c)
26–35
d)
Above 35
2.
How often do you buy female clothing?
a)
Monthly
b)
Once in 2–3 months
c)
Occasionally
d)
Festive season only
3.
What type of clothing do you prefer most?
a)
Casual wear
b)
Ethnic wear
c)
Office wear
d)
Party wear
4.
What price range do you usually prefer for one dress/item?
a)
Below ₹ 500
b)
₹ 500–₹ 1000
c)
₹ 1000–₹ 2000
d)
Above ₹ 2000
5.
Which factor matters most while buying clothes?
a)
Quality
b)
Price
c)
Fashion/Design
d)
Brand
6.
From where do you usually buy clothes?
a)
Local market
b)
Mall
c)
Online
d)
Boutique
7.
Which colours/designs do you prefer most?
8.
Would you like seasonal discounts and festival offers?
a)
Yes
b)
No
9.
What location would be most convenient for you to visit such a store?
10.
What additional service would attract you most?
a)
Trial room
b)
Home delivery
c)
Alteration service
d)
Online order facility
These questions can help Lalit Mesgs understand the market before launching the store.
Question Q.4.(iv)
Q.4.(iv) “’Survey is a customized technique.” Which technique is generally used for it? Throw some light on the importance and precautions of these techniques.
Answer Q.4.(iv)
Survey is a customized technique because the investigator decides, in the light of the objectives of the study, which technique should be used for collecting information in the best way from the respondents. The most commonly used technique for conducting a survey is the questionnaire. An important technique, most commonly followed for conducting a survey, is through a questionnaire.
Importance of Questionnaire / Survey Technique
1.
It helps in understanding the needs, wants, likes, dislikes, and demand pattern of customers.
2.
It helps in risk reduction by giving information before decisions are taken.
3.
It helps in attaining business objectives smoothly because it is designed according to the entrepreneur’s needs.
4.
It provides a market overview through collection, recording, analysis, and interpretation of data.
5.
It gives forecasting support and improves decision-making in pricing, packaging, and distribution.
Precautions while using this technique
1.
The questionnaire should be based on clear objectives.
2.
It should not be too complicated and must be properly worded.
3.
No relevant information should be left out.
4.
The technique should be used with caution, tact, and expertise.
5.
Responses should be honestly and accurately recorded, and the survey must be edited, tabulated, analysed, and concluded properly.
Thus, survey is called a customized technique because it must be designed according to the purpose of the study, and its effectiveness depends on how carefully and skillfully it is used.