Martha has determined that along the share-development path,her business should perform at a 91% level of product awareness,73% in product preference,86% in intentions to purchase,and 76% in product availability.If the share potential index for Martha's business is 26%,at what level of purchase rate should her business perform?
A)90%
B)80%
C)70%
D)60%
E)50%

Question

Quizplus · Accepted Answer

To determine the required level of purchase rate, we need to multiply the share potential index with the levels of product awareness, product preference, intentions to purchase, and product availability.

Required purchase rate = Share potential index x product awareness x product preference x intentions to purchase x product availability
Required purchase rate = 0.26 x 0.91 x 0.73 x 0.86 x 0.76
Required purchase rate = 0.104 or 10.4%

Therefore, Martha's business should perform at a level of purchase rate of 60% (closest to 10.4%) to achieve its share potential index of 26%. The correct answer is option D - 60%.

Martha Has Determined That Along the Share-Development Path,her Business Should