---
title: "Market study and customer feedback"
subject: "Entrepreneurship Development"
chapter: 2
key: "semester_7/entrepreneurship_development:market-study-feedback"
source: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/market-study-feedback
site: BCT Engineering
---

# Market study and customer feedback

Entrepreneurship Development · Chapter 2: Identification of Viable Business Cases

- Asked in: year not given, 5 marks
- Video: [What is Market Research? | From A Business Professor](https://www.youtube.com/watch?v=U8tQnSx5fHo) — Business School 101
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/market-study-feedback
- Whole chapter: https://www.bctengineer.com/md/semester_7/entrepreneurship_development/chapter-2

## Question

Describe how a startup carries out a market study and collects customer feedback.

## Short answer

A market study sets an objective, collects primary and secondary data from a representative sample, and analyses needs and competition. Customer feedback arrives through interviews, surveys, reviews, social media, usage data, and NPS, and is used to improve the product continuously.

## Answer

A **market study** gathers information about customers, competitors and conditions so that decisions are based on evidence, not guesswork.

#### Steps
1. **Define the objective**, e.g. will urban families buy packaged organic vegetables?
2. **Select the data type:**
   - *Primary data:* collected first-hand by interview, survey, observation, focus group, trial sale.
   - *Secondary data:* from reports, statistics offices, trade bodies, websites.
3. **Design the sample and tool:** questionnaire with clear, unbiased questions; choose a sample that represents the target group.
4. **Collect data** in the field or online.
5. **Analyse:** find customer needs, willingness to pay, buying habits, competitor strengths and weaknesses.
6. **Report and decide:** go, modify or stop.

#### Collecting feedback
- Interviews and short surveys after use
- Ratings and reviews, suggestion boxes
- Social-media comments and complaint logs
- Usage data and repeat-purchase rate
- Net Promoter Score (NPS): "How likely are you to recommend us?" (0-10)

Feedback must be recorded, grouped and acted on; the product is then improved and re-tested in a continuous loop.

**Answer:** Define the objective, collect primary and secondary data, analyse needs and competition, and keep a continuous feedback loop of surveys, reviews and usage data.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which is primary data?
   A. Data collected first-hand through a survey or interview
   B. Government statistics report
   C. Trade body report
   D. Website article
   Answer: A. Primary data is collected first-hand; the others are secondary. (Key point: Primary vs secondary data)

2. What is the first step of a market study?
   A. Collect data in the field
   B. Define the objective
   C. Analyse competitors
   D. Report the decision
   Answer: B. The study begins by defining the question to be answered. (Key point: First step)

3. A sample for a questionnaire should be:
   A. As cheap as possible
   B. Only friends of the founder
   C. Representative of the target group
   D. Only existing competitors
   Answer: C. The sample must represent the target group. (Key point: Sampling)

4. Net Promoter Score is based on which question?
   A. How much did you pay?
   B. How many times did you visit?
   C. How old are you?
   D. How likely are you to recommend us (0-10)?
   Answer: D. NPS asks likelihood of recommending on a 0-10 scale. (Key point: NPS)

## Related in Entrepreneurship Development

- [Pilot testing and market feedback](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Apilot-testing-feedback) — Entrepreneurship Development, chapter 3
- [Customer segmentation and target segment](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Acustomer-segmentation-bases) — Entrepreneurship Development, chapter 4
- [Customer lifetime value and CAC numerical](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Altv-cac-unit-economics) — Entrepreneurship Development, chapter 4
- [Defining market size using TAM, SAM, SOM](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Amarket-size-tam-sam-som) — Entrepreneurship Development, chapter 3

## Related in other subjects

- [Fair market value of Tata Sipradi showroom](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Avalue-tata-sipradi-showroom) — Construction Management, chapter 13
- [Out-of-plane bending of a masonry wall](https://www.bctengineer.com/question.md?key=semester_5%2Fdesign_of_timber_and_masonry_structures%3Aout-of-plane-wall-flexure-check) — Design of Timber and Masonry Structures, chapter 6
- [Feasibility study and its types](https://www.bctengineer.com/question.md?key=semester_5%2Fsoftware_engineering%3Afeasibility-study) — Software Engineering, chapter 1
- [Best of three mutually exclusive projects, 10-year study](https://www.bctengineer.com/question.md?key=semester_6%2Fengineering_economics%3Amutually-exclusive-abc-study-10-years) — Engineering Economics, chapter 4