Pieter Rabinovich, a marketing exec at Michelin, is comparing the current level of market demand for snow tires to the potential demand level. A high market penetration index will suggest to Pieter that
A) a substantial growth potential exists for all firms in the market.
B) it would be great time to expand distribution outlets.
C) mistakes have been made in selecting the correct promotional alternatives.
D) the price of the product or service is too high with respect to competition.
E) there will be increased costs in attracting the few remaining prospects.

Question

Quizplus · Accepted Answer

A high market penetration index indicates that a large portion of the potential market has already been captured, suggesting that attracting additional customers may be more challenging and costly.

Pieter Rabinovich, a Marketing Exec at Michelin, Is Comparing the Current