1. What is the CDI?

The Consumer Demand Index (CDI) is a measure that compares the consumption of a particular product or service in a market segment relative to the population size of that segment. It helps identify markets with higher than average consumption.

2. How Does the Calculator Work?

The calculator uses the CDI equation:

Where:

• Consumption Index — Measure of product/service consumption
• Population Index — Measure of population size

Explanation: A CDI of 100 indicates average consumption relative to population size. Values above 100 indicate higher than average consumption.

3. Importance of CDI Calculation

Details: CDI helps businesses identify high-potential markets, allocate marketing resources effectively, and understand consumption patterns relative to population size.

4. Using the Calculator

Tips: Enter the consumption index and population index values. Both must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What does a CDI of 120 mean?
A: A CDI of 120 means consumption is 20% higher than what would be expected based on population size alone.

Q2: How is CDI different from BDI (Brand Development Index)?
A: CDI measures category consumption while BDI measures brand performance relative to market potential.

Q3: What are typical CDI values?
A: Values typically range from 0 to 200+, with 100 being average. Values above 100 indicate strong demand potential.

Q4: When should CDI be used?
A: CDI is particularly useful for market planning, media allocation, and identifying growth opportunities.

Q5: What are limitations of CDI?
A: CDI doesn't account for market saturation, competition, or pricing factors that might affect demand.