Question

The potential market represents all active duty military​ members, all​ veterans, and their families. Assume that according to the United States Department of​ Defense, as of December​ 31, 2014 there were 1 comma 361 comma 631 active duty personnel in all armed services. The veteran population totaled 21 million at the end of 2014. Assuming the average cost of life insurance is ​$680 per year and that potential customers purchase one policy per​ year, use the chain ratio method to calculate the market potential for life insurance in the military market.The number of buyers in the market can be estimated as ___ .

Answer 1

The number of buyers in the market can be estimated at 22,361,631.

The market potential of life insurance in the military market is $15,205,909,080 or $15.2 Billion

The Chain Ratio method is used to calculate the total market demand of the product. here we already have the number of target population given. The Chain Ratio Method is used to calculate marketing costs as well.