CBS Market Analysis & Research 2

Question 1

A company wants to estimate the total revenue opportunity if it captured 100% of its target market. Which metric does this represent?

Accepted Answer

Total Addressable Market (TAM)

Answer

TAM (Total Addressable Market) represents the full revenue opportunity if a company achieved 100% market share with no competition.

Question 2

Which competitive analysis framework evaluates a company's position by examining Political, Economic, Social, Technological, Environmental, and Legal factors?

Accepted Answer

PESTEL Analysis

Answer

PESTEL Analysis is a macro-environmental framework assessing six external factors that can affect a business.

Question 3

A market research firm collects data through in-depth interviews with 12 industry experts. This is an example of:

Accepted Answer

Qualitative primary research

Answer

In-depth interviews are a qualitative primary research method, generating non-numerical insights collected firsthand.

Question 4

When plotting a market map, the 'chasm' in Geoffrey Moore's Technology Adoption Lifecycle refers to the gap between:

Accepted Answer

Early Adopters and Early Majority

Answer

Moore's 'chasm' is the difficult transition from Early Adopters (visionaries) to the Early Majority (pragmatists).

Question 5

A business analyst calculates that the top four firms in an industry hold 65% of total market share. This measure is called:

Accepted Answer

Four-Firm Concentration Ratio (CR4)

Answer

The CR4 (Four-Firm Concentration Ratio) sums the market shares of the four largest firms to indicate industry concentration.

(CBS) Certified Business Strategist Practice Test

(CBS) Certified Business Strategist Practice Test

CBS Market Analysis & Research 2