Suppose a developer is interested in building a new subdivision of single-family homes. Through her market research, the developer has determined that the target market segment potential in year 1 consists of 176 households. If the developer projects that she will be able to sell 44 homes in the first year, what is her assumed capture rate?
A) 15%
B) 25%
C) 44%
D) 75%

Question

Quizplus · Accepted Answer

The capture rate is the percentage of the total potential market that the developer is able to capture or sell to. In this case, the assumed capture rate can be calculated by dividing the number of homes the developer projects to sell (44) by the total potential market (176), and then multiplying by 100 to get a percentage.

Assumed capture rate = (44/176) x 100% = 25%

Therefore, the best choice is B, which represents a capture rate of 25%.

Suppose a Developer Is Interested in Building a New Subdivision