Market Demand Measurement Quiz

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the first step in the Chain Method for estimating market demand for dark beer?

  • Determine the total population. (correct)
  • Identify your personal estimate of target market income.
  • Calculate the average percentage spent on beers.
  • Estimate the average spending on food.

Which of the following methods relies on a single factor for estimating geographical market potential?

  • The Market Build-up Method
  • The Chain Method
  • The Index-of-Buying-Power Method (correct)
  • The Arithmetic Straight Line Method

In the context of demand measurement, which of the following methods does NOT utilize multipliers?

  • The Chain Method
  • The Index-of-Buying-Power Method (correct)
  • The Statistical Straight Line Method
  • The Market Build-up Method

Which method is characterized by the use of computer-aided formulas for estimating market demand in large companies?

<p>Multi-factor equations employed by large companies (B)</p> Signup and view all the answers

Which computational method is NOT classified under Statistical Methods?

<p>Arithmetic Geometric Curve Method (D)</p> Signup and view all the answers

What defines market demand according to Philip Kotler?

<p>Total volume that would be bought by a defined customer group in a specified geographical area. (B)</p> Signup and view all the answers

Which method of measuring market demand involves calculating consumption based on population?

<p>Per capita consumption (C)</p> Signup and view all the answers

What is one reason analysts might use a 'correction factor' when measuring market demand?

<p>To reduce potential inaccuracies in obtained figures. (B)</p> Signup and view all the answers

Which of the following organizations is NOT mentioned as a source for market data?

<p>Department of Education (DepEd) (A)</p> Signup and view all the answers

What is a characteristic of commissioning professional market analysts for demand measurements?

<p>It involves intricate computations using various market data. (A)</p> Signup and view all the answers

How can marketers estimate total demand based on their product's market share?

<p>By applying a percentage share to the total market size. (D)</p> Signup and view all the answers

Why might the methods of demand measurement described be challenging for novice researchers?

<p>They require advanced technological tools and software. (C)</p> Signup and view all the answers

What factor is NOT part of Kotler's market demand definition?

<p>Total profit margin in a defined period (A)</p> Signup and view all the answers

Flashcards are hidden until you start studying

Study Notes

Market Demand Measurement

  • Market demand for a product is the total volume bought by a specific customer group within a defined area, period, marketing environment, and program.

Theoretical Demand Measurement

  • Published Statistics: Use statistics from agencies such as National Statistics Office (NSO), National Economic and Development Authority (NEDA), Department of Trade and Industry (DTI), and the Bangko Sentral ng Pilipinas (BSP) to determine market demand.

  • Per Capita Consumption: Multiply per capita consumption by the population of your target market to estimate theoretical consumption.

  • Total Demand (Percentage Share): Multiply the percentage share of your specific product(s) to the total market by the overall market size to determine theoretical demand.

  • Theoretical Market Equations: Market demand can be computed through intricate computer programs using various market data. This method is typically used by larger companies due to its cost and complexity.

Analytical Demand Measurement

  • Chain Method: Estimate market demand by considering factors such as total population, target market population, per capita income, spending on food, spending on alcoholic beverages, spending on beer, and spending on dark beer.

  • Market Build-up Method: This method is incompletely described in the text, but likely focuses on identifying all potential customers and their consumption habits.

  • Index-of-Buying-Power Method: This method uses one factor, such as population, to estimate market potential. For example, if your target market comprises 5.2% of the total consumer population, it may be assumed they consume 5.2% of the total products sold in the market. This method is commonly used for small companies, while larger companies rely on complex computer-aided formulas.

Projection Methods

  • Arithmetic Methods:

    • Arithmetic Straight Line Method: Projects demand based on a consistent, linear growth rate.
    • Arithmetic Geometric Curve Method: Projects demand using a combination of linear and exponential growth rates.
  • Statistical Methods:

    • Statistical Straight Line Method: Uses statistical data to project demand along a linear trend.
    • Statistical Semi-Long Method: Uses a combination of linear and non-linear trends for projection.
    • Statistical Parabolic Projection Method: Projects demand using a parabolic curve to account for accelerating or decelerating growth.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

More Like This

Fixed Income Securities Quiz
5 questions
Market Demand and Supply Quiz
10 questions

Market Demand and Supply Quiz

InsightfulCarnelian3370 avatar
InsightfulCarnelian3370
Market Demand Concepts
25 questions

Market Demand Concepts

UnabashedSecant avatar
UnabashedSecant
Use Quizgecko on...
Browser
Browser