From Market Research to Demand Estimation: A Calculation Procedure for Market Sizing in Business Plans

  • Rubén Neptalí Ávila Peralta Universidad Técnica Estatal de Quevedo, Equador
  • Wendy Diana Carranza Quimi Universidad Técnica Estatal de Quevedo, Equador
Keywords: market research; demand estimation; market sizing; operating capacity; business plan

Abstract

Market research provides information on consumer characteristics, preferences, and purchase intentions, but these results do not by themselves constitute estimates of demand, sales, or revenue. This study aimed to explain, through an applied case, the calculation process used to transform market research results into estimates of customers, service demand, market size, capturable demand, operating capacity, expected sales, and revenue for a business plan. An applied, quantitative, descriptive, non-experimental, cross-sectional study was conducted using a home-based ecological vehicle-washing service in Quevedo, Ecuador, as the case. The reference population comprised 130,248 urban residents aged 20 years or older, and 384 observations were analyzed using non-probability convenience sampling and digital self-selection. The results yielded an estimate of 91,568 potential customers, an expected frequency of 1.5781 services per customer per month, and estimated demand of 144,500 services per month. Maximum operating capacity, adjusted for the service mix, was 938 services per month; therefore, capacity rather than market size was the main constraint on sales. Capacity-utilization scenarios showed that market capture should be linked to effective operating capacity rather than directly to stated purchase intention. The case demonstrates that maintaining traceability among observed data, assumptions, units, time periods, and operating constraints produces commercially and technically coherent estimates without assigning universal validity to the procedure.

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Author Biographies

Rubén Neptalí Ávila Peralta , Universidad Técnica Estatal de Quevedo, Equador
Wendy Diana Carranza Quimi , Universidad Técnica Estatal de Quevedo, Equador

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Published
2026-09-12
How to Cite
Ávila Peralta , R. N., & Carranza Quimi , W. D. (2026). From Market Research to Demand Estimation: A Calculation Procedure for Market Sizing in Business Plans. GADE: Scientific Journal, 6(2), 289-311. https://doi.org/10.63549/rg.v6i2.848