Scenario: Rookie Chong
John Chong is a rookie in global business, but wants to sell his product, Zulu doll, in every corner of the world. He wants to examine every potential market but wants to keep the costs low. John has asked you to explain a few things about analyzing international markets.
-The income elasticity of Zulu doll is determined in which step of the screening process?

Question

Quizplus · Accepted Answer

The income elasticity of the Zulu doll is determined in the step of measuring the market potential. This step involves estimating the size of the potential market and examining various aspects such as demand, competition, and economic conditions to determine the market's attractiveness. The income elasticity of demand is a measure of the responsiveness of the quantity demanded of a product to changes in consumers' income levels. So, measuring the market potential would involve analyzing how changes in income levels in different markets would impact the demand for the Zulu doll.

Scenario: Rookie Chong John Chong Is a Rookie in Global Business, but Wants