Beginner
In a top-down market sizing, which sequence is the standard approach?
- A. Sum the revenues of the top three competitors and add 20% for smaller players
- B. Start from one store's revenue and multiply by the number of stores in the country
- C. Start from a known population, apply penetration and usage assumptions, then multiply by spend per userCorrect
- D. Ask the interviewer for the market size and sanity-check it against GDP
Takeaway. Top-down sizing narrows one large countable base through a chain of assumptions you can each defend, and prices the survivors at the end.
