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Relative Market Share Is

Question 120

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 and cash hogs.Cash cow businesses have big relative market shares (above 1.0) ,while cash hog businesses 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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