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Source: Reprinted by permission of Terry C. Wilson, West Virginia University.

Source: Reprinted by permission of Terry C. Wilson, West Virginia University.

return calculations. Most U.S. companies view profitability in terms of return on investment (ROI), return on sales (ROS), or return on net assets (RONA). Return on capital employed (ROCE) is often calculated in multinational companies. For measuring market potential, no one of these calculations appears to function better than another.

The fourth element is the type of buying decision. The basis for a buying decision must be predicated on whether the decision is a straight rebuy, a modified rebuy, or a new task.

The fifth and final element is the customer market structure. Based on the same criteria as competitive structure, the market can be classified as monopsony, oligopsony, differentiated competition (monopsonistic competition), or pure competition.

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