Entrepreneurship Summative 4

Which of the following is the primary goal of market research in entrepreneurship?

• To limit the number of competitors

• To understand consumer preferences and needs

• To establish a pricing strategy

• To reduce the cost of marketing

When trying to find a potential market, what should be the entrepreneur's first focus?

• Launching the product immediately

• Conducting a detailed study of the market

• Developing a marketing plan

• Increasing production capacity

How can a potential market be described?

• A group of individuals who are likely to purchase a product in the future

• A fully developed market with loyal customers

• A market where competition is nonexistent

• A market with no growth potential

Why is it essential for businesses to evaluate customer needs before creating a product?

• To ensure the product meets market demands

• To reduce advertising costs

• To limit the number of competitors

• To avoid unnecessary production costs

Which factor is least likely to have an impact on the size of a potential market?

• Customer demand

• Product features

• The location of suppliers

• Changes in consumer behavior

How does competition drive innovation in a market?

• By reducing the need for product differentiation

• By encouraging continuous improvements in products and services

• By lowering the price of products

• By decreasing customer expectations

What makes a potential market unattractive to entrepreneurs?

• High levels of customer demand

• Excessive production costs

• A low number of competitors

• Low barriers to entry

A market dominated by a single company with no direct competition is called a:

• Monopoly

• Oligopoly

• Niche market

• Free market

What is one reason why entrepreneurs need a business plan when entering a potential market?

• To attract investors and showcase the market's potential

• To limit production costs

• To create barriers to entry for competitors

• To avoid customer feedback

What is the purpose of dividing a market into segments?

• To identify and categorize potential customers based on shared characteristics

• To increase production efficiency

• To reduce product prices

• To create a monopoly