MINI-CASE
Clarion Inc.is a firm that produces components for the manufacturing equipment market and currently enjoys a 42% market share.Through an analysis of the share development path,the marketing department of the firm estimates that the firm should perform at a 95% level in product awareness,85% in product preference,80% in intentions to purchase,90% in product availability,and 75% in rate of purchase.
-Mini-Case Question.Calculate the share development index (SDI)for Clarion Inc.for an 8 percent reduction in market share.
A)78
B)92
C)56
D)34.6
E)15.7

Question

Quizplus · Accepted Answer

The Share Development Index (SDI) is calculated by multiplying the percentages of product awareness, product preference, intentions to purchase, product availability, and rate of purchase together, and then multiplying by 100. For Clarion Inc., this calculation would be: 0.95 (product awareness) * 0.85 (product preference) * 0.80 (intentions to purchase) * 0.90 (product availability) * 0.75 (rate of purchase) * 100 = 45.9%. However, with an 8 percent reduction in market share, the SDI would adjust accordingly. The question seems to have a discrepancy in how it expects the 8 percent reduction to be applied, as the calculation provided does not directly factor in this reduction. Typically, the SDI is a static measure based on the factors provided, and market share reduction would be a separate consideration. Given the options and the calculation, the closest match (without directly applying an 8% reduction, as that step is not standard in calculating SDI) is 78, which does not mathematically align with the provided calculation method. It appears there may be a misunderstanding in the question setup or a mistake in the calculation explanation.

MINI-CASE Clarion Inc.is a Firm That Produces Components for the Manufacturing