Relative Market Share Is

question 106

Multiple Choice

Relative market share is

• A) calculated by dividing a business's percentage share of total industry sales volume by the percentage share held by its largest rival-it is a better indicator of a business's competitive strength than is a simple percentage measure of market share.
• B) calculated by adjusting a company's dollar market share up or down in proportion to whether the company's quality and customer service 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) and cash hog businesses have low relative market shares (below 0.5).
• E) calculated by subtracting the industry-average market share (based on dollar volume) from a company's market share to determine how much a company's market share is 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.

Understand how marginal utility of income varies with risk preferences.

Analyze the impact of disability or loss of income on utility and decision-making towards insurance policies.

Understand the fundamental principles of contract law, including offer, acceptance, and consideration.

Differentiate between offers and invitations to treat.

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Definitions:

Cross-functional Teams

Groups composed of members from different departments working together towards a common goal.

External Customer Satisfaction

Measures how well a company meets the expectations of external customers, those not directly affiliated with the company.

Formal Controls

Mechanisms established to ensure that an organization's operations align with its goals and standards, including policies, procedures, and regulations.

Marketing Implementation

The process of executing marketing strategies and plans to achieve marketing objectives.