If you are calculating the market size for medical expenses for pets (or people)..do you need to factor in the lifespan /replacement rate? They have a number for the average medical spend per person / pet but to calculate the number of people or pets..would replacement rates be valid in this approach?
Are there situations where you don't need to factor in replacement rate?
Hi there,
Think about what you're estimating…
Does the treatment for people/pets get replaced?
No.
So, you don't need replacement rate here! Every year x people/pets need treatment for x $…there's nothing to replace!
Replacement rate applies to the lifespan of something that in-and-of-itself needs to be replaced.
Most market sizings do not have replacement rate.
Some additional Q&As
https://www.preplounge.com/en/consulting-forum/regarding-the-replacement-concept-i-wonder-when-to-use-average-number-of-households-when-to-use-a-view-per-person-10737
https://www.preplounge.com/en/consulting-forum/why-population-life-expectancy-10847
