There are 100 apartment complexes (worth ~$350K annually in potential contracts), that the Go Green recycling company has identified which don't offer recycling for their tenants. The city just passed a law requiring large apartment complexes to recycle. Go Green has contacted apartment complex owners offering their services with mixed results. Which one of the criteria for defining a potential market is missing from this example?

Question

Business

Danna Church

4 October, 19:08

There are 100 apartment complexes (worth ~$350K annually in potential contracts), that the Go Green recycling company has identified which don't offer recycling for their tenants. The city just passed a law requiring large apartment complexes to recycle. Go Green has contacted apartment complex owners offering their services with mixed results. Which one of the criteria for defining a potential market is missing from this example?

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Answers (1)

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Maia Pittman · Answer 1

An organisation has the ability to pay for the service.

Explanation:

In this scenario Go Green recycling company has identified a need by getting information on complex owners that do not provide recycling services to their tenants.

Legislation has also been passed requiring large complex owners to provide recycling services for tenants.

However they did not determine if the organisations have the ability to pay for services being offered.

So they will get mixed reactions when they approach complex owners.