management-by-the-numbers.com Management By The Numbers (MBTN) Your question was
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management-by-the-numbers.com Management By The Numbers (MBTN) Your question was answered - nikoanast27@gmail.com- Gmail Operations Management question | Chegg.com Problem Sets Total Questions Course: Illinols State Marketing 190 with Kim Judson S18 Module: Market Share Metrics I I Problem Set ID:66 24 Levon sells cartoon balloons in town. His family business thrives. Levon's balloons are priced at $8.00 each and sells 397 balloons each month. His largest competitor, Paul, sells 860 balloons each month at a price of $3.00 each. Levon estimates the total balloon market in town to be 2000 per month at an average price of $4.00 per balloon What is Levon's relative market share based on units? 0.00 index (2 decimal places) Submit Answer Exit PS1 5 CALCULATED VARIABLES: total S8,000 rev $3,176Explanation / Answer
To be calculated:
Market share based on units
Given values:
Number of balloons sold by Levon = 397 balloons per month
Price of balloon by Levon = $8.00
Number of balloons sold by Paul = 860 balloons per month
Price of balloon by Paul = $3.00
Number of balloons sold in the market = 2000 balloons per month
Average Price of balloon = $4.00
Solution:
Levon’s relative market share based on units is calculated as;
Levon’s market share = Number of balloons sold by Levon / Number of balloons sold in the market
Putting the given values in the above formula, we get;
Levon’s market share = 397 / 2000
Levon’s market share = 0.1985
In percentage terms,
Levon’s market share = (0.1985) x 100 = 19.85%
Similarly, Paul's market share = (860 / 2000) x 100 = 43%
Now, Relative market share is calculated as;
Relative market share = Your firm's market share / Largest firm's market share
Levon's relative market share = 19.85 / 43
Levon's relative market share based on units = 0.46 or 46.16%
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