Supply Chain Management

Category - Demand

What best describes the term market growth?
  1. Increase in product value.
  2. Increase in market share.
  3. Increase in product variety.
  4. Increase in consumption of product from new or existing customers.
Explanation
Answer: D - Market growth refers to an increase in consumption of the product either from new or existing customers. Toyota provides an example. When Toyota offers a price promotion on the Camry, they may attract buyers who were considering the purchase of a lower-end model. Thus, the promotion increases the size of the overall family sedan market, as well as increasing Toyota’s sales.
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