Reducing Risk and Making Better Business Decisions

• What is market research?

  The process of collecting market information
• Why do businesses conduct market research?

  To reduce risk and make better decisions
• What is one risk entrepreneurs face when starting a business?

  Risking their own money
• How does market research help reduce risk for entrepreneurs?

  It provides information about customer needs
• What can market research reveal about competition?

  How much competition there will be
• What is a target market?

  A group of customers a business aims at
• Why might a business want to change its product?

  To respond to customer feedback and needs
• How can a cafe use market research before launching a new coffee?

  To determine customer interest in the product
• What is the benefit of making informed decisions in business?

  It increases the chance of success
• What are the main purposes of market research?

  • Collect information about customer needs
  • Reduce risk for entrepreneurs
  • Enable better business decisions
  • Identify gaps in the market
• What types of data can market research gather?

  • Qualitative data (opinions, feelings)
  • Quantitative data (numbers, statistics)
• What factors can market research help determine for a business?

  • Customer preferences
  • Pricing strategies
  • Competition levels
  • Target market identification