Y5 a) b) c) d) Customers tend to exhibit loyalty to product brands but may be persuaded

Y5

Transcribed Image Text:

a) b) c) d) Customers tend to exhibit loyalty to product brands but may be persuaded through clever marketing and advertising to switch brands. Consider the case of five brands: A, B, C, D and E. Customers "unyielding" loyalty to a given brand is estimated to switch the other brands with the probabilities given in the following transition matrix. 6.2 5.4 A B C 4.9 6.8 D E A 0.16 0.14 0.24 0.24 0.18 B 0.16 0.2 0.24 0.25 0.15 C 0.2 0.22 0.16 0.15 0.19 D 0.33 0.29 0.13 0.16 0.22 How long on the average will it take for a brand C customer to switch to brand A? E 0.15 0.15 0.23 0.2 0.26 a) b) c) d) Customers tend to exhibit loyalty to product brands but may be persuaded through clever marketing and advertising to switch brands. Consider the case of five brands: A, B, C, D and E. Customers "unyielding" loyalty to a given brand is estimated to switch the other brands with the probabilities given in the following transition matrix. 6.2 5.4 A B C 4.9 6.8 D E A 0.16 0.14 0.24 0.24 0.18 B 0.16 0.2 0.24 0.25 0.15 C 0.2 0.22 0.16 0.15 0.19 D 0.33 0.29 0.13 0.16 0.22 How long on the average will it take for a brand C customer to switch to brand A? E 0.15 0.15 0.23 0.2 0.26