Which of the following statement pertaining to estimating market potential using chain ratio analysis is NOT true?
A) It forces a manager to think about who the potential customers for the product are
B) It seldom results in thinking about untapped segments
C) It usually reveals a significant amount of untapped purchasing power in the market
D) It helps uncover untapped purchasing power waiting for a new product formulation
E) It helps identify untapped purchasing power that can be captured by a new competitor

Question

Quizplus · Accepted Answer

Chain ratio analysis is designed to help managers systematically estimate market potential by considering various factors and segments, which encourages thinking about all potential customer segments, including untapped ones. Thus, saying it seldom results in thinking about untapped segments is not true.

Which of the Following Statement Pertaining to Estimating Market Potential