Methodology

How Is This Database Built?

Market Potential data measures the likely demand for a product or service. This database projects the expected number of consumers and provides a Market Potential Index (MPI).

An MPI compares the demand for a specific product or service for a trade area to the U.S. national demand for that product or service. The index is tabulated to represent a value of 100 as the average demand. A value of more than 100 represents higher demand, and a value of less than 100 represents lower demand.

ESRI calculates an MPI by combining two data sources:

• ESRI's segmentation system Community Tapestry
• Mediamark Research Inc. Doublebase 2005

Because Mediamark Research Inc. and ESRI can identify each survey respondent by Community Tapestry segment, a rate of consumption can be calculated for any trade area.

For more details about the 2007 methodology, read Methodology Statement: Market Potential Database [PDF]