Question: QUESTION 2 Over any given month, Pick n Pay loses 10% of its customers to Shoprite and 20% to Spar. Shoprite loses 5% to Pick

QUESTION 2

Over any given month, Pick n Pay loses 10% of its customers to Shoprite and 20% to Spar. Shoprite loses 5% to Pick n

Pay and 10% to Spar. Spar loses 5% of its customers to each of the two competitors. At the present time, Pick n Pay has

40% of the market, while the others have equal share.

2.1) What is the current market share and the matrix transitional probabilities?

2.2) What will the market shares be for the three retail stores next months?

2.3) In three months from now, what will the market shares be for the three retail stores?

2.4) If at the moment, there is 1200 000 customers for the 3 retail stores, how many customers each store currently has?

2.5) How many customers each store will have 3 months from now?

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