Scenario 6.2 Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for short line transport.
Refer to Scenario 6.2. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year. That number represents the
A) company sales potential.
B) breakdown approach.
C) market potential.
D) buildup approach.
E) company sales forecast.

Question

Quizplus · Accepted Answer

The 1,000 rail lines represent the total market potential for locomotive engines, which is the definition of market potential. Option A is incorrect because it refers specifically to the company's potential sales, not the industry as a whole. Option B (breakdown approach) and D (buildup approach) are planning techniques and do not apply to this scenario. Option E (company sales forecast) is incorrect because the scenario does not provide any specific sales projections for GE Transportation.