Which of the following is a recommended strategy when conducting a bottom-up analysis?
A)Make optimistic sales estimates in order to attract potential investors.
B)Keep your product launch limited to a relatively small and manageable geographic area.
C)Determine product price point without relying on comparisons to similar products already on the market.
D)Be quite conservative in initial sales and profit estimates.

Question

Quizplus · Accepted Answer

The recommended strategy when conducting a bottom-up analysis is to be quite conservative in initial sales and profit estimates. This approach ensures that the business does not overestimate its potential revenue and profitability, leading to more realistic planning and resource allocation. Choosing option A could lead to unrealistic expectations, which could be detrimental to the business in the long run. Option B may limit the business's growth potential, as it is not testing the product in different regions. Option C could lead to inaccurate pricing, as competitor prices are an important consideration in determining product price point.

Which of the Following Is a Recommended Strategy When Conducting