Background: This assignment relates to the following article: Waheeduzzaman, A. N. M. (2008), “Market Potential Estimation in International Markets: A Comparison of Methods,” Journal of Global Marketing. 21 (4), 307-320. Also check PowerPoints under Course Contents.
Assume yourself to be a marketing manager of Amazon. 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.
Number of households for CountryA = 90 million.
Number of households for CountryB = 70 million.
Percentage of households subscribing to eBay.com in CountryB = 55%
Percentage of households having Internet in CountryA = 85%
Literacy rate in CountryA = 99%
Percentage of households with substantial purchasing power in Country A = 80%
Question 1: Estimate market potential for Amazon in CountryA using Chain Ratio Method and Method of Analogy. Show your work. No work, no points.
Question 2: Comment on the difference in estimation.
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