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Often, market sizes are not known between and within countries. All channels may not be not covered or data may be missing. The income level approach allows companies and organizations create complete, harmonized, and accurate market sizes.
Consumer surveys are not easily scaled across geographic levels. By linking them to age and consumer classes it is possible to get granular estimates. It is also possible to see how segments grow over time in the future.
Predicting demand is often based only on historical data. But we know much more. With reliable predictions of future population and income growth, we know antecedent categories, and we can pool countries. The consumer classes approach makes this a high accuracy exercise.
Consumer classes can be applied to price segments, brands, and items (and not only categories). A key determinant of good pricing is the work effort required, which is price divided income per time unit. Thus, price decisions are directly linked to the relevant classes of consumer.
Companies typically know how much they sell, but not what the latent market is. By using analysis based on consumer classes (and additional techniques), it is possible to show what demand could be by consumer class, rather than what it is.
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