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Relative Market Share Is

Question 41

Multiple Choice

Relative market share is:

A) calculated by dividing a company's percentage share of total industry sales volume by the percentage share held by its largest rival.
B) calculated by adjusting a company's revenue share up or down by a factor proportional to whether their quality/customer service factors are above/below industry averages.
C) calculated by dividing a company's market share (based on dollar volume) by the industry-average market share.
D) particularly useful in identifying cash cows,which have big relative market shares (above 1.0) ,and cash hogs,which have low relative market shares (below 0.5) .
E) calculated by subtracting the industry-average market share (based on revenue) from the company's market share to highlight relative share above/below the industry average.This amount is a better indicator of a business's competitive strength than is just looking at the firm's market share percentage.

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