Question

A machine tool company that estimates the market potential for its wood lathe by identifying all potential buyers of wood lathes in the area and estimating the number of lathes each one might​ buy, is using the​ ________ to estimate market potential.

Answer 1

The fact that the machine building company identifies all potential buyers of wood lathes in the area and estimates the number of lathes each one might​ buy means that the company is using the​ market-build up to estimate market potential. This market-build up method produces accurate results if the company has a list of all potential buyers and a good estimate of what each will buy.