Using the chain ratio method described in Appendix 2, estimate the market potential for the Fisker Karma sports car. Search the Internet for reasonable numbers to represent the factors you identified in the previous question. Assume each buyer will purchase only one automobile and that the average price of automobiles in this market is $100,000.

When you think of hybrid or electric automobiles, you probably think don’t think of the sports car. But the Fisker Karma is about to shatter that stereotype. It’s been called the hybrid with sex appeal and is often compared to a Mercedes-Benz roadster. In the increasingly crowded field of new-generation electric vehicles, Fisker Automotive wants to carve out a niche as a high-performance eco-car with lots of style. The Fisker Karma goes from 0 to 60 miles per hour in six seconds, can go up to 125 miles per hour, and can travel 50 miles on electric power and 300 miles on combined electric and gasoline power. All this performance and style does not come cheap; prices range from $87,900 to $106,000. Before bringing it to market, however, the company needs to identify its target market and estimate the market potential in this segment.