Beyond the Hype: An Analyst's Guide to Calculating TAM, SAM, and SOM

How to use:

1. Replace ALL bracketed placeholders [ ] with your specific product and business details. Be as detailed and accurate as possible. The more specific you are, the better the AI's estimate will be (though it will still be an estimate).
2. Paste the completed prompt into your chat session with ChatGPT, Gemini, or another.
3. Review the output critically: Any GPT provides estimates based on its training data and your input. It's a great starting point but not a substitute for deep, primary market research. Use the output to refine your thinking and guide further investigation.
4. Iterate: If the initial results seem off or lack detail, ask follow-up questions, provide more context, or ask it to refine its calculations based on different assumptions.

Template:

Act as an experienced Market Research Analyst specializing in market sizing.

Your Objective: Estimate the Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) for the specific product/service detailed below. Provide quantitative estimates (e.g., in currency, number of users, number of units) and explain your reasoning and methodology for each calculation.

Use the following information I provide about my product/service:

1. Product/Service Description:

[Clearly describe your product or service. What is it? What core problem does it solve? What are its key features and benefits? Is it software, hardware, a service, a platform, etc.?]

[Example: "A SaaS platform using AI to automate invoice processing and reconciliation for small-to-medium businesses (SMBs) in the construction industry."]

2. Target Audience & Customer Profile:

[Describe your ideal customer(s) in detail. Include demographics (age, location - if applicable), firmographics (company size, industry, revenue - for B2B), psychographics (needs, pain points, buying behavior), job titles (for B2B), technical sophistication, etc.]

[Example: "US-based construction SMBs with 10-100 employees, annual revenue $2M-$50M, primarily using basic accounting software like QuickBooks or spreadsheets, experiencing pain points around manual data entry errors and slow payment cycles. Key decision-maker is often the Owner, CFO, or Office Manager."]

3. Geographic Scope:

[Define the geographical market(s) you are initially targeting and potentially plan to expand into. Be specific (e.g., "Initially targeting the United States," "Focusing on London, UK," "Global English-speaking market").]

[Example: "Initial focus on the United States market, with potential expansion to Canada and the UK within 3 years."]

4. Business Model & Pricing:

[Explain how you make money. Is it a subscription (monthly/annual?), one-time purchase, freemium, usage-based, commission, etc.? Provide an estimated Average Revenue Per User/Customer (ARPU/ACV) or price point.]

[Example: "Tiered monthly subscription model based on invoice volume. Average ACV (Annual Contract Value) estimated at $2,400 per SMB customer."] 

5. Competitive Landscape:

[Briefly list your main direct and indirect competitors. What distinguishes your offering (Unique Selling Proposition - USP)? Do you have any rough estimates of existing market share distribution, if known? ]

[Example: "Direct competitors include Bill.com, Melio, and manual processing/basic accounting software add-ons. Our USP is the AI-powered accuracy specifically trained on construction industry invoice formats and superior integration with construction project management software. Market is fragmented."] 

6. Sales & Marketing Strategy (Brief Overview):

[How do you plan to reach your customers? (e.g., Direct sales team, online marketing, channel partners, content marketing). This helps inform the SOM calculation regarding realistic reach.]

[Example: "Primarily through targeted online advertising (LinkedIn, Google Ads), content marketing focused on construction finance efficiency, and partnerships with construction software providers."] 

7. Existing Data (Optional but Recommended):

[If you have any existing market research data, industry reports, number of potential leads identified, current customer count, or relevant statistics, include them here. e.g., "Industry report X states the US construction SMB market size is Y," "We have identified 50,000 potential leads matching our criteria."] 

Your Task & Output Requirements:

Based strictly on the information provided above, your general knowledge base, and search capabilites:

1. Define & Calculate TAM:

• Provide the standard definition of TAM.
• Estimate the TAM (e.g., total global/regional spending on solutions addressing this problem category, or total number of potential customers worldwide/regionally who face this problem). Specify the unit (e.g., $, # of companies, # of users).
• Explain your calculation methodology (e.g., top-down approach using industry reports, bottom-up approach counting potential users/companies). State key assumptions.

2. Define & Calculate SAM:

• Provide the standard definition of SAM.
• Estimate the SAM (e.g., the portion of TAM that fits your specific product offering, target customer profile, and defined geographic scope). Specify the unit.
• Explain your calculation methodology and how it narrows down from the TAM. State key assumptions (e.g., filtering TAM by specific industry, company size, geography).

3. Define & Calculate SOM:

• Provide the standard definition of SOM.
• Estimate the SOM (e.g., the portion of SAM we can realistically capture in the short-to-medium term (e.g., next 1-3 years), considering our resources, sales/marketing strategy, competition, and realistic market penetration). Specify the unit.
• Explain your calculation methodology (e.g., applying a realistic capture rate to SAM based on factors provided, using competitor benchmarks if applicable). State key assumptions about market penetration rate, sales efficiency, and competitive pressure.

4. Methodology Summary:

• Briefly summarize the overall approach used (e.g., primarily top-down, bottom-up, comparable analysis).

1. Assumptions & Limitations:

• Clearly list the key assumptions made for each calculation and acknowledge the limitations of this estimation (e.g., reliance on publicly available data, estimations based on provided inputs).

6. Potential Data Sources:

• Mention the types of data sources one would typically use for such an analysis to validate your response (e.g., Census data, industry reports from Gartner/Forrester/IBISWorld, government economic statistics, competitor filings, surveys).

Present the results clearly, separating TAM, SAM, and SOM with their respective definitions, estimates, and explanations. If any provided information is unclear or insufficient for a reasonable estimate, state what additional information would be helpful.

Act as an experienced Market Research Analyst specializing in market sizing.
Your Objective: Estimate the Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) for the specific product/service detailed below. Provide quantitative estimates (e.g., in currency, number of users, number of units) and explain your reasoning and methodology for each calculation.

Please use the following information I provide about my product/service:

1. Product/Service Description:
2. • A SaaS platform using AI to automate invoice processing and reconciliation for small-to-medium businesses (SMBs) in the construction industry.
2. Target Audience & Customer Profile:
3. • US-based construction SMBs with 10-100 employees, annual revenue $2M-$50M, primarily using basic accounting software like QuickBooks or spreadsheets, experiencing pain points around manual data entry errors and slow payment cycles. Key decision-maker is often the Owner, CFO, or Office Manager.
3. Geographic Scope:
4. • Initial focus on the United States market, with potential expansion to Canada and the UK within 3 years.
4. Business Model & Pricing:
5. • Tiered monthly subscription model based on invoice volume. Average ACV (Annual Contract Value) estimated at $2,400 per SMB customer.
5. Competitive Landscape:
6. • Direct competitors include Bill.com, Melio, and manual processing/basic accounting software add-ons. Our USP is the AI-powered accuracy specifically trained on construction industry invoice formats and superior integration with construction project management software. Market is fragmented.
6. Sales & Marketing Strategy (Brief Overview):
7. • Primarily through targeted online advertising (LinkedIn, Google Ads), content marketing focused on construction finance efficiency, and partnerships with construction software providers.
7. Existing Data (Optional but Recommended):
8. • N\A

Your Task & Output Requirements:
Based strictly on the information provided above, your general knowledge base, and search capabilities:

1. Define & Calculate TAM:
2. • Provide the standard definition of TAM.
   • Estimate the TAM (e.g., total global/regional spending on solutions addressing this problem category, or total number of potential customers worldwide/regionally who face this problem). Specify the unit (e.g., $, # of companies, # of users).
   • Explain your calculation methodology (e.g., top-down approach using industry reports, bottom-up approach counting potential users/companies). State key assumptions.
2. Define & Calculate SAM:
3. • Provide the standard definition of SAM.
   • Estimate the SAM (e.g., the portion of TAM that fits your specific product offering, target customer profile, and defined geographic scope). Specify the unit.
   • Explain your calculation methodology and how it narrows down from the TAM. State key assumptions (e.g., filtering TAM by specific industry, company size, geography).
3. Define & Calculate SOM:
4. • Provide the standard definition of SOM.
   • Estimate the SOM (e.g., the portion of SAM we can realistically capture in the short-to-medium term (e.g., next 1-3 years), considering our resources, sales/marketing strategy, competition, and realistic market penetration). Specify the unit.
   • Explain your calculation methodology (e.g., applying a realistic capture rate to SAM based on factors provided, using competitor benchmarks if applicable). State key assumptions about market penetration rate, sales efficiency, and competitive pressure.
4. Methodology Summary: Briefly summarize the overall approach used (e.g., primarily top-down, bottom-up, comparable analysis).
5. Assumptions & Limitations: Clearly list the key assumptions made for each calculation and acknowledge the limitations of this estimation (e.g., reliance on publicly available data, estimations based on provided inputs).
6. Potential Data Sources: Mention the types of data sources one would typically use for such an analysis to validate your response (e.g., Census data, industry reports from Gartner/Forrester/IBISWorld, government economic statistics, competitor filings, surveys).

Please present the results clearly, separating TAM, SAM, and SOM with their respective definitions, estimates, and explanations. If any provided information is unclear or insufficient for a reasonable estimate, please state what additional information would be helpful.

Below is an example of how one might structure the market sizing analysis for your AI-powered invoice automation platform. The figures below are illustrative estimates based on a mix of top‐down and bottom‐up reasoning. In a real project, you’d validate these numbers with detailed data (e.g., from Census Bureau data, industry reports, and proprietary surveys).

1. Total Addressable Market (TAM)

Definition: TAM represents the total revenue opportunity if 100% of the global market (or the full set of potential customers) adopted your solution.

Estimation & Calculation:

• Scope: Global market for construction SMBs that experience manual invoice processing issues.
• Assumptions:
• • In the US, we estimate ~20,000 construction SMBs meet the criteria (10–100 employees, $2M–$50M in revenue).
  • For initial global potential, include Canada (~5,000) and the UK (~8,000), yielding approximately 33,000 companies.
  • With an average annual contract value (ACV) of $2,400, the TAM in revenue terms would be:
  • • TAM = 33,000 companies × $2,400 ≈ $79 million per year.

Methodology: This bottom-up approach multiplies the estimated number of companies (sourced from industry size approximations) by your ACV. Key assumptions include the estimated counts of companies in each geography and that each meets the basic need for automated invoice processing.

2. Serviceable Available Market (SAM)

Definition: SAM is the segment of the TAM that fits your product’s features, target customer profile, and defined geographic focus.

Estimation & Calculation:

• Scope: Initially, your product will serve the US market only.
• Assumptions:
• • Focusing solely on US-based construction SMBs, estimated at ~20,000 companies.
  • The revenue opportunity:
  • • SAM = 20,000 companies × $2,400 ≈ $48 million per year.

Methodology: We narrow the TAM by excluding companies outside the US. The assumption is that only US-based businesses will be targeted in the near term due to geographic rollout limitations and localization requirements.

3. Serviceable Obtainable Market (SOM)

Definition: SOM is the share of SAM that you can realistically capture in the next 1–3 years, considering competitive dynamics, your sales & marketing strategy, and resource constraints.

Estimation & Calculation:

• Assumptions:
• • Given competitive pressures (with players like Bill.com and Melio) and a relatively fragmented market, a realistic capture rate in the short-to-medium term might be around 10% of SAM.
  • SOM = 10% of 20,000 companies = 2,000 companies.
  • The corresponding revenue opportunity would be:
  • • SOM Revenue ≈ 2,000 companies × $2,400 = ~$4.8 million per year.

Methodology: This estimate applies a market penetration rate (10%) to the SAM. The rate is chosen based on typical early market capture benchmarks in competitive SaaS sectors.

4. Methodology Summary

• Approach:
• • Bottom-Up Estimation: Starting with estimates of the number of potential companies, then multiplying by your product’s ACV.
  • Geographic & Segment Filtering: Adjusting figures based on your targeted customer profile (construction SMBs with specific revenue/employee ranges) and initial US focus.
  • Realistic Capture Estimation: Applying a conservative market penetration rate (10%) to derive SOM.

5. Assumptions & Limitations

• Key Assumptions:
• • Estimated counts of construction SMBs are based on industry approximations and may require validation with specific data (e.g., from the U.S. Census Bureau, IBISWorld reports).
  • The ACV of $2,400 per customer is assumed uniform across the target segment.
  • A 10% penetration rate for SOM is an assumption reflecting competitive dynamics and early sales limitations.
• Limitations:
• • Reliance on broad market estimates rather than granular data.
  • Variability in company size and spending may shift actual numbers.
  • Economic fluctuations and industry-specific trends could affect market dynamics.

6. Potential Data Sources

• Government & Census Data: U.S. Census Bureau, Statistics Canada, and UK Office for National Statistics for firm counts and size distributions.
• Industry Reports: IBISWorld, Gartner, and Forrester for insights on market segmentation and technology adoption.
• Competitor Analysis: Public filings and market research on companies like Bill.com and Melio.
• Surveys & Databases: Industry surveys and commercial databases that profile construction firms by revenue and employee size.

Below is an estimation framework for your AI‐powered invoice automation solution targeting US construction SMBs. The numbers are derived using a bottom‐up approach based on estimated company counts and your pricing model.

1. Total Addressable Market (TAM)

Definition: TAM is the total annual revenue opportunity available if your solution captured 100% of all potential customers facing the problem.

Estimate:

• Assumption: There are roughly 745,000 construction companies in the US. Research suggests that almost 70% are very small (e.g. <5 employees). By conservatively estimating that about 10% of all construction firms fall into the 10–100 employee category—and meet the revenue range of $2M–$50M—we estimate roughly 75,000 target companies.
• Calculation: TAM=75,000 companies×$2,400 (annual contract value)=$180 million per year.

Methodology: A bottom‐up approach was applied by first identifying the overall number of US construction businesses (using Census and industry data), then estimating the proportion with 10–100 employees and within the revenue range. Multiplying by your average ACV gives the TAM.

2. Serviceable Available Market (SAM)

Definition: SAM is the portion of TAM that fits your product’s specific features, the target customer profile (those using basic accounting systems like QuickBooks or spreadsheets with manual pain points), and the defined geographic region (US).

Estimate:

• Assumption: Among the 75,000 companies, assume that about 60% have the outdated, manual processes your solution would most improve. That narrows the market to roughly 45,000 companies.
  
• Calculation: SAM=45,000 companies×$2,400=$108 million per year.

Methodology: This step filters TAM by adoption readiness. Here, we assume that only a subset of companies use basic accounting systems and face significant manual pain points—making them ideal candidates for an AI upgrade.

3. Serviceable Obtainable Market (SOM)

Definition: SOM is the share of the SAM that you can realistically capture in the next 1–3 years, accounting for competition, market penetration challenges, and your current resources.

Estimate:

• Assumption: Given competitive pressures and typical early market penetration for niche SaaS solutions, a 10% capture of the SAM is a realistic target.
• Calculation: SOM=10%×$108 million=$10.8 million per year.

Methodology: We apply a conservative capture rate (10%) to the SAM to reflect realistic sales, marketing effectiveness, and competitive dynamics in the early years of product rollout.

Methodology Summary

• Approach: A bottom‐up estimation was performed by:
• • Estimating the total number of US construction firms and filtering for the target size (10–100 employees).
  • Multiplying the resulting company count by your average annual contract value to determine TAM.
  • Narrowing TAM to those with outdated manual systems to arrive at SAM.
  • Finally, applying a realistic market penetration rate (10%) to estimate SOM.
• Key Assumptions:
• • Total construction companies in the US: ~745,000
  • Target segment (10–100 employees, $2M–$50M revenue): ~75,000 companies
  • Adoption subset (companies with significant manual pain points): ~60% of target (~45,000 companies)
  • Average ACV: $2,400 per year
  • Realistic early market penetration: 10% of SAM
• Limitations:
• • The company counts and percentages are rough estimates based on available industry and Census data.
  • Variations in revenue levels and current technology adoption could affect the true market size.
  • Competitive dynamics and customer readiness for change may alter the achievable penetration rate.
• Potential Data Sources for Validation:
• • U.S. Census Bureau’s Statistics of U.S. Businesses
  • SBA reports and industry studies (e.g., IBISWorld, Gartner)
  • Market surveys and competitor analysis in the construction technology and finance automation space

• Government & Census Data: U.S. Census Bureau, Statistics Canada, and UK Office for National Statistics for firm counts and size distributions.
• Industry Reports: IBISWorld, Gartner, and Forrester for insights on market segmentation and technology adoption.
• Competitor Analysis: Public filings and market research on companies like Bill.com and Melio.
• Surveys & Databases: Industry surveys and commercial databases that profile construction firms by revenue and employee size.

• U.S. Census Bureau’s Statistics of U.S. Businesses
• SBA reports and industry studies (e.g., IBISWorld, Gartner)
• Market surveys and competitor analysis in the construction technology and finance automation space

Okay, acting as an experienced Market Research Analyst, here is an estimation of the Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) for your AI-powered invoice automation SaaS platform targeting US construction SMBs.

First, I need to gather some relevant data points using search.Based on the information provided and publicly available data, here is the market sizing estimation for your AI-powered invoice automation SaaS:

1. Total Addressable Market (TAM)[1][2][3][4][5]

• Definition: TAM represents the total market demand for a product category or the entire revenue opportunity available for a specific product or service if 100% market share were achieved.[3][4] It signifies the broadest potential scope of the market.
• Estimate:
• • Method 1 (Market Value Focus): The US Accounts Payable (AP) Automation market was valued at approximately USD $3.85 Billion in 2023 and is projected to grow significantly.[6] Some sources estimate the North American market specifically was around USD $1 Billion in 2023, projected to grow at a CAGR of ~12%. Let's use a rounded figure based on these reports for the relevant US segment: approx. USD $4 Billion annually.
  • Method 2 (Number of Businesses Focus): There are over 30 million businesses in the US, with roughly 6 million being employer firms.[7] A very broad TAM could consider all businesses that process invoices.
• Methodology (Market Value Focus): This estimate uses a top-down approach, leveraging market research reports on the Accounts Payable (AP) Automation market size in the US or North America.[5] This represents the total spending on solutions designed to automate invoice processing across all industries and company sizes within the region.
• Key Assumptions:
• • The AP Automation market size is a reasonable proxy for the total demand for solutions like yours, encompassing various providers and approaches (including software, services, etc.).
  • Market reports accurately reflect the overall spending in this category.[5]

2. Serviceable Available Market (SAM)[2][4]

• Definition: SAM is the segment of the TAM that your specific product or service can realistically target, considering your product focus, business model, and geographic scope.[5]
• Estimate:
• • Number of Companies: There are approximately 750,000 - 900,000 construction firms in the US.[5] Filtering for SMBs specifically within the 10-100 employee range is challenging with publicly available data, as it's often aggregated differently (e.g., <5, 5-9, 10-19, 20-49, 50-99).[5] Using available breakdowns (e.g., BLS, NAICS Association data), we can estimate the number of firms in the 10-19, 20-49, and 50-99 employee buckets for the construction sector.[5] A rough estimate suggests there could be approximately 120,000 - 160,000 US construction firms in the 10-100 employee range. Let's use a midpoint estimate of 140,000 companies.
  • Market Value: Based on the estimated number of target companies and your average ACV: 140,000 companies * $2,400 ACV = USD $336 Million annually.
• Methodology: This uses a bottom-up refinement approach.[8] We start with the total number of US construction firms and filter based on the specified employee size (10-100).[5] We then multiply this number by the estimated Average Annual Contract Value (ACV) to arrive at the market value for this specific segment.
• Key Assumptions:
• • Publicly available data on the number of construction firms by employee size brackets provides a reasonable basis for estimation.[5]
  • The 10-100 employee size range is a good proxy for the 2M−50M annual revenue target, although these may not perfectly align for every company.
  • The estimated average ACV of $2,400 is representative of what this target segment would pay.
  • These target companies are the ones serviceable by your current SaaS offering within the US.[5]

3. Serviceable Obtainable Market (SOM)[1][2][3][4][5][8]

• Definition: SOM is the portion of the SAM that your business can realistically capture within a specific timeframe (e.g., the first 1-3 years), considering your current resources, go-to-market strategy, competitive landscape, and realistic market penetration potential.
• Estimate:
• • Number of Companies: A realistic initial market penetration goal for a new SaaS product in a competitive, fragmented market over 1-3 years might be between 1% and 3% of the SAM. Applying a 2% penetration rate: 2% of 140,000 companies = 2,800 companies.
  • Market Value: 2,800 companies * $2,400 ACV = USD $6.72 Million annually. (Alternatively: 2% of $336 Million SAM = $6.72 Million).[5]
• Methodology: This estimate applies a realistic market capture rate to the calculated SAM. The capture rate is based on factors like being a relatively new entrant, the specific niche focus (AI for construction invoices), the effectiveness of the outlined sales/marketing strategy (online ads, content, partnerships), and existing competition (Bill.com, Melio, manual methods).[5]
• Key Assumptions:
• • A 2% market penetration of the SAM is achievable within the initial 1-3 year timeframe given your resources and strategy.
  • The sales and marketing strategies will be effective enough to reach and convert this portion of the SAM.
  • Competitive pressures allow for this level of market share capture.
  • The $2,400 ACV holds true for the customers captured.

4. Methodology Summary

The overall approach combines:

• Top-Down Analysis: For TAM, using overall market reports for AP Automation.
• Bottom-Up Refinement: For SAM, identifying the specific number of target companies based on industry and size criteria within the geographic scope.[5]
• Realistic Projection: For SOM, applying an estimated achievable market penetration rate to the SAM based on internal capabilities and external market factors.

5. Assumptions & Limitations

• Key Assumptions:
• • Accuracy of public data sources for company counts and market sizes.
  • Correlation between employee size (10-100) and revenue (2M−50M) for target construction SMBs.
  • Stability of the $2,400 ACV.
  • Achievability of the 2% market penetration rate for SOM within 1-3 years.
  • The definition of "construction SMB" aligns well with standard industry classifications (e.g., NAICS codes for construction).
• Limitations:
• • Estimates rely heavily on publicly available data, which may lack granularity (especially for combined employee and revenue segmentation) or be slightly outdated.[5] Paid industry reports would offer more precision.
  • The actual number of SMBs experiencing the specific pain points and willing to adopt an AI SaaS solution might be smaller than the total number fitting the demographic profile.[5]
  • The $2,400 ACV is an estimate; actual ACV could vary.
  • Market dynamics, competitive responses, and execution effectiveness can significantly impact the actual obtainable market (SOM).[5]
  • This analysis doesn't account for potential market expansion into Canada/UK within 3 years, focusing only on the initial US market.

6. Potential Data Sources for Validation

To refine these estimates, one would typically consult sources such as:

• Government Statistics: U.S. Census Bureau (Statistics of US Businesses - SUSB, County Business Patterns - CBP), Bureau of Labor Statistics (QCEW).[5]
• Industry Reports: Market research firms like Gartner, Forrester, IBISWorld, Grand View Research, Verified Market Research publish reports on AP Automation, Construction Industry trends, and SaaS markets.[5]
• Company Databases: Commercial databases (e.g., ZoomInfo, Apollo.io, possibly filtered NAICS/SIC data providers) can provide more granular company lists, though often require subscription fees.[5]
• Competitor Analysis: Public filings (if competitors are public), press releases, pricing pages, and case studies of competitors like Bill.com or Melio.[5]
• Industry Associations: Groups like the Associated General Contractors (AGC) of America often publish industry statistics.[5]
• Primary Research: Surveys or interviews with target construction SMBs to validate pain points, software usage, and willingness to pay.

This analysis provides a foundational estimate based on the provided details and accessible data. Further refinement would require access to more detailed, potentially proprietary data sources and ongoing market monitoring.

Search Sources

1. hubspot.com
2. seerinteractive.com
3. amazon.com
4. masterclass.com
5. constructioncoverage.com
6. verifiedmarketresearch.com
7. hourly.io
8. foundationinc.co

• Government Statistics: U.S. Census Bureau (Statistics of US Businesses - SUSB, County Business Patterns - CBP), Bureau of Labor Statistics (QCEW).
• Industry Reports: Market research firms like Gartner, Forrester, IBISWorld, Grand View Research, Verified Market Research publish reports on AP Automation, Construction Industry trends, and SaaS markets.
• Company Databases: Commercial databases (e.g., ZoomInfo, Apollo.io, possibly filtered NAICS/SIC data providers) can provide more granular company lists, though often require subscription fees.
• Competitor Analysis: Public filings (if competitors are public), press releases, pricing pages, and case studies of competitors like Bill.com or Melio.
• Industry Associations: Groups like the Associated General Contractors (AGC) of America often publish industry statistics.
• Primary Research: Surveys or interviews with target construction SMBs to validate pain points, software usage, and willingness to pay.