online assignment

463 Marketing Management: Chapter 3

· How would the market development index change if the annual purchase rate increased to 25%?

Market potential = 4,500*50%* 25%*1= 562.5

Market Development index= Market Demand/ Market potential *100 = 325/562.5 *100 = 57.8

· What would be the market potential in both units and dollar values if the buying ceiling reduced to 40% and the average price increased to $700?

Market potential in units = 4,500 * 40% * 20%*1= 540

Market potential in dollars = 4,500 * 40% * 20%*1*700= 378,000

· How much would the market share index be if price acceptance index could be improved from 50% to 60%?

· How much would the market share index be if a product’s purchase metric could be improved from 75% to 80%?

45% x 75% x 60% x 79% x 75% = 11.9%

45% x 75% x 50% x 79% x 80% = 10.7%