Market size and composition MCQs With Answer

Market size and composition MCQs With Answer are essential for B.Pharm students to understand pharmaceutical market dynamics. This introduction covers key concepts such as market size estimation, market composition, therapeutic segmentation, market share, volume versus value analysis, CAGR, TAM, SAM, SOM, pricing, distribution channels, branded vs generic medicines, and forecasting methods. Practical understanding of data sources (IMS, national sales data), units like Defined Daily Dose (DDD), and effects of patent expiry and policy changes helps students link pharmacy practice to industry trends. These MCQs reinforce analytical skills needed for drug marketing, pharmacoeconomics, and regulatory perspectives. Now let’s test your knowledge with 30 MCQs on this topic.

Q1. What does “market size” typically refer to in pharmaceutical analysis?

• Total sales value or volume of medicines in a defined market and period

Correct Answer: Total sales value or volume of medicines in a defined market and period

Q2. Which metric represents the annual growth rate of a market over multiple years?

Correct Answer: Compound Annual Growth Rate (CAGR)

Q3. In market composition analysis, value refers to:

Correct Answer: Monetary sales (currency) of drugs

Q4. Volume in pharmaceutical markets is commonly measured in:

Correct Answer: Units sold or Defined Daily Doses (DDD)

Q5. TAM, SAM, and SOM stand for:

Correct Answer: Total Addressable Market, Serviceable Available Market, Serviceable Obtainable Market

Q6. Market share is best defined as:

Correct Answer: A company’s sales as a percentage of total market sales

Q7. Which data source is commonly used for pharmaceutical sales and prescription trends?

Correct Answer: IMS Health (IQVIA) and national sales audits

Q8. When comparing markets at different times, which price adjustment is important?

Correct Answer: Adjusting for inflation to get constant prices

Q9. A sudden increase in sales after patent expiry of a competitor is most likely due to:

Correct Answer: Entry of cheaper generic alternatives

Q10. In market segmentation, therapeutic segmentation groups products by:

Correct Answer: Disease area or therapy class (e.g., antibiotics, antihypertensives)

Q11. Volume-to-value analysis helps identify:

Correct Answer: Whether growth is driven by price changes or increased consumption

Q12. Which is a common unit for international drug consumption comparison?

Correct Answer: Defined Daily Dose (DDD) per 1,000 inhabitants per day

Q13. Branded versus generic composition in a market primarily affects:

Correct Answer: Pricing dynamics and profit margins

Q14. Which forecasting method uses past sales data to predict future market size?

Correct Answer: Time-series analysis

Q15. “Constant price” market growth excludes the effects of:

Correct Answer: Inflation and currency fluctuations

Q16. Which factor most directly increases market volume for a drug class?

Correct Answer: Increase in disease prevalence or diagnosis rates

Q17. In a value-based market, high-value growth with low volume growth suggests:

Correct Answer: Price increases or shift to more expensive products

Q18. Which distribution channel covers direct supply from manufacturers to hospitals?

Correct Answer: Hospital procurement channel

Q19. Market composition analysis by molecule class uses which classification system commonly?

Correct Answer: Anatomical Therapeutic Chemical (ATC) classification

Q20. Which is an example of a secondary data source for pharma market research?

Correct Answer: Published sales audits and industry reports

Q21. “SOM” (Serviceable Obtainable Market) refers to:

Correct Answer: The realistic share of market a company can capture short-term

Q22. Which pricing concept measures price sensitivity of demand?

Correct Answer: Price elasticity of demand

Q23. When calculating market share by volume, you would divide company volume by:

Correct Answer: Total market volume for the same period

Q24. A market dominated by a few large firms is described as:

Correct Answer: Oligopoly

Q25. Which analysis helps identify unmet needs and market opportunities across therapeutic areas?

Correct Answer: Gap analysis and market segmentation

Q26. In market forecasting, scenario analysis is used to:

Correct Answer: Explore different possible futures based on assumptions

Q27. Which factor would reduce the value market but increase the volume market?

Correct Answer: Entry of low-priced generics increasing units sold but lowering revenue

Q28. Per capita consumption of medicines is useful to compare markets because it:

Correct Answer: Normalizes consumption by population size

Q29. Which regulatory change most directly affects market composition quickly?

Correct Answer: Reclassification of a drug from prescription to OTC

Q30. For a B.Pharm student analyzing market data, an important ethical consideration is:

Correct Answer: Ensuring confidentiality and proper use of proprietary sales data

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