Final answer:
Market research enables businesses to gather information on consumer preferences, segment the market, develop products accordingly, and analyze the competition.
Step-by-step explanation:
The use of market research mentioned in the question refers to the process of gathering information about consumer preferences and opinions regarding a product or service. This helps businesses understand what consumers like or dislike about their offerings so they can make informed decisions about product development and marketing strategies.
- Consumer behavior: Market research allows businesses to study consumer behavior by collecting data on their purchasing decisions, preferences, and opinions. This information helps businesses understand their target audience and tailor their products and services accordingly.
- Market segmentation: Research helps identify different segments of the market based on factors like demographics, psychographics, and behavior. This segmentation helps businesses customize their products and marketing strategies to meet the specific needs and preferences of different consumer groups.
- Product development: Market research provides insights into what consumers want in a product or service, allowing businesses to develop offerings that align with consumer preferences. It helps in identifying gaps in the market and opportunities for innovation.
- Competitive analysis: By conducting market research, businesses can gather information about their competitors and analyze their strengths and weaknesses. This helps in understanding the competitive landscape and positioning their products and services effectively.