Assignment 3: This assignment relates to the market potential estimation methods described in the article, Waheeduzzaman (2008). Amazon has decided to enter country Country A. We have two very similar countries, Country A and Country B. Use the following information and (1) estimate market potential for Amazon in Country A using Chain Ratio Method and Method of Analogy, and, (2) comment on the difference in estimation.
1. Number of households for Country A = 40 million.
2. Number of households for Country B = 36 million.
3. Percentage of households subscribing to eBay.com in Country B = 22%
4. Percentage of households having Internet in Country A = 45%
5. Literacy rate in Country A = 97%
6. Percentage of households with substantial purchasing power in Country A = 71%
Answer all questions above and follow the equation format in file excel attached. Provide correct formula in order to complete the assignment otherwise not meet requirements.
Book to read:
Article Title: Market Potential Estimation in International Markets
Journal of Global Marketing, Vol. 21 (4), 2008, 307-320.