When using the income statement approach to opportunity assessment, multiplying the number of households within your planned market area by the annual product category spending for your business produces which of the following important measures?
A) retail market share
B) retail capacity
C) geographic spending
D) market potential
E) None of the answers apply.

Question

Quizplus · Accepted Answer

Multiplying the number of households by the annual product category spending gives an estimate of the total potential sales in the market, which is referred to as market potential.

When Using the Income Statement Approach to Opportunity Assessment, Multiplying