Fall 2020 - MKTG 4340

Assignment 3
Due: October 19, 2020
 
Instructions: Write in the space provided. Do not upload anything. Do not
write in the Comments section. 10 points will be deducted for uploading or
writing in the Comments section.
 
Question/Task: This assignment relates to the market potential estimation
methods described in the article, Waheeduzzaman (2008). Amazon has
decided to enter country CountryA. We have two very similar countries
CountryA and CountryB whose data are given below. Amazon and eBay
have very similar entry strategy.
 
1. Number of households for CountryA = 40 million.
2. Number of households for CountryB = 25 million.
3. Percentage of households subscribing to eBay.com in CountryB =
25%
4. Percentage of households having Internet in CountryA = 75%
5. Literacy rate in CountryA = 98%
6. Percentage of households with substantial purchasing power in
Country A = 65%
 
Task 1: Estimate market potential for Amazon in CountryA using Chain
Ratio Method and Method of Analogy. Show your work. No work no points.
 
Task2: Comment on the difference in estimation.