A gardening supply manufacturer\'s research shows that 30% of the 110 million ho

Question

A gardening supply manufacturer's research shows that 30% of the 110 million households in the United States grow flowers, and 20% of those grow roses. Seeing a market opportunity, the manufacturer plans to introduce a new product designed to prevent blight on roses. The product will be sold in packages containing 10 applications and will be priced at $12.99. Gardeners are expected to buy an average of two packages a year. The marketing budget for the product is expected to generate a 40% trial rate among rose growers. Test market data show that 30% of triers convert to regular usage. The retail market for gardening supplies is $800 million annually. What market share can the manufacturer expect to gain for the new product? Choose 1 answer A. 1.2% B. 2.6% C. 8.5% D. 25.7%

Explanation / Answer

B. 2.6%

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