CUET Entrepreneurship-Chapter-Managing Market

(b)

Explanation: The secondary source would be the best suitable source for demand analysis because secondary sources provide published data about the pattern of income of the people and give an idea about their liking.

(d)

Explanation: Smoothing the progress of liking is one of the various activities to be followed for creating demand while the others are the strategies to be adopted for firm foothold in the market.

(a)

Explanation: Sample survey is best suitable for the products whose demand changes with the change in the income of consumers.

(a) Explanation: The primary source is related to personal contact between the receiver and the supplier. It is applicable when customers are concentrated in a limited area.

(c) Explanation: The main aim of an entrepreneur is to earn maximum profits by satisfying the needs of the customers. The entrepreneur aims to understand their needs, tastes, habits and preferences so that he can design goods accordingly and sell the same in the market.

(b)

Explanation: Demand analysis is a component of market assessment. The analysis involves various concerns such as identification of a customer as an individual or a company, economic condition of the customers, the pattern of expenditure, need of customers and important industries forming major part of customers.

(d) Explanation: Being an entrepreneur, the methods to be followed to obtain the goodwill of customers are: continuous market study, improvement in quality at nominal cost, maximum satisfaction to customer’s needs etc.

(c) Explanation: Market is an agreement between the buyers and sellers of goods and services at a particular given price and time. Every entrepreneur aims at increasing its market share i.e., the ratio of its sales to the total sales in the economy.

(a) Explanation: Assurance about quality is one of the various activities to be followed for creating demand while the others are the strategies to be adopted for firm foothold in the market.

(b)

Explanation: Market demand for a product is the total volume that would be bought by the customers in a defined time period. The assessment of market demand is called demand analysis.

(c) Explanation: To decide about the manpower force, arrangement of their training and formulation of policies regarding their remuneration is called staffing.

(b) Explanation: Trade practices are different for different regions, different categories of consumers and for different types of products.

(b)

Explanation: Goodwill means the reputation of a firm or business in the market. It develops the confidence of the customers in the products and services.

(a) Explanation: There are many consumers in a market. Different consumers demand different products. Thus, an entrepreneur follows various methods and strategies for different customers. Image of the product is the goodwill of the product in customer’s mind.

(b) Explanation: There are many consumers in a market. Different consumers demand different products. Thus, an entrepreneur follows various methods and strategies for different customers. Secondary sources are useful when target area is large and the customers are scattered over a vast area.

(a) Explanation: Primary sources are useful where the target area is small. Results obtained through primary sources are more accurate because there is direct contact between the receiver and the supplier.

(b) Explanation: In an economy, the consumer is considered as the king because he is able to create demand for goods and services.

(b) Explanation: The tools employed by an entrepreneur for market assessments are demand analysis, understanding the competition in the market, project innovations etc.

(d)

Explanation: Primary sources are useful when the target area is small. Computer being an expensive product has less number of customers.

(c)

Explanation: A customer is the central point around whom all the marketing activities revolve. Thus, a customer is called a king.

(d) Explanation: A published data is associated with secondary sources while the other three are related to primary sources.

(c) Explanation: Direct contact is associated with primary sources while the other three are related to secondary sources.

(b) Explanation: Age factor is a demographical segment while the others are psychographic segments. In demographic segmenting, the customers vary across the geographical location and are classified on the basis of population.

(a) Explanation: Liberal thoughts fall under attitude which is associated with psychographic segment while the others are demographical segments. In demographic segmenting the customers vary across the geographical location and are classified on the basis of population.

(b) Explanation: There are various strategies to be followed for firm foothold in the market. These strategies involve understanding psychological need, understanding social set-up, personal selling strategies, proper supply etc.

(c)

Explanation: Goodwill means the reputation of a firm or business in the market. It develops the confidence of the customers in the products and/or services.

(b)

Explanation: There are various kinds of products and an entrepreneur has to follow different methods and strategies for different customers. Thus, trade practices act as the indicator for competition.

(d) Explanation: Statistical services are associated with sample survey as it is based on a random sample model.

(d)

Explanation: Goodwill means the reputation of a firm or business in the market. It develops the confidence of the customers in the products and/or services.

(c) Explanation: Secondary sources are related to the printed data regarding population, production etc.