When answering this question, the candidate should provide a specific example where their market understanding directly influenced a strategic business decision. They should clearly outline the market conditions, their analysis or insights, the decision made, and the positive impact it had on the business. It’s important to highlight how their understanding of customer needs, competitor landscape, or industry trends informed the decision-making process. The candidate should also emphasize any data or research they utilized to support their insights. Using the STAR framework (Situation, Task, Action, Result) can help structure the response effectively. Lastly, the candidate should showcase their ability to think critically and strategically in leveraging market knowledge for business success.