If a product is tried by 20 percent of the target market during test marketing,and the repeat purchase rate in this test market is 20 percent,the estimated market share for this product would be approximately:
A)0.4 percent
B)4 percent
C)40 percent
D)400 percent

Question

Quizplus · Accepted Answer

The estimated market share can be calculated by multiplying the trial rate by the repeat purchase rate, which gives:

0.20 (trial rate) × 0.20 (repeat purchase rate) = 0.04 or 4%

Therefore, the estimated market share for this product would be approximately 4%. Option B is the correct answer.

If a Product Is Tried by 20 Percent of the Target