There are two good toasters on the market today: The Super Deluxe Chromium Coated Premium Toaster...

     

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There are two good toasters on the market today: The Super Deluxe Chromium Coated Premium Toaster ("Toaster A"), and the Aluminum Plated Cross-Hatched Toaster Extraordinaire ("Toaster B"). Each toaster is of comparable quality and comparable price, and the two companies are competing for market share. Suppose that most customers check a customer review website before they buy their toaster, where previous customers have submitted reviews of the toasters. Because the toasters are of comparable quality, the average rating for both toasters is about the same. However, prospective customers can also see the total number of submitted reviews for each product, which we might reasonably use as a proxy for the popularity of the product in the market. Customers tend to adopt a more popular choice. (a) How many variables would you need to model this system? What would they be? (b) Are there any attractors in this system (i.e. any stable fixed points)? (c) How does the long term behavior of this system depend on the initial condition? (d) If you were head of marketing for Toaster A, what would you adopt as a marketing strategy? There are two good toasters on the market today: The Super Deluxe Chromium Coated Premium Toaster ("Toaster A"), and the Aluminum Plated Cross-Hatched Toaster Extraordinaire ("Toaster B"). Each toaster is of comparable quality and comparable price, and the two companies are competing for market share. Suppose that most customers check a customer review website before they buy their toaster, where previous customers have submitted reviews of the toasters. Because the toasters are of comparable quality, the average rating for both toasters is about the same. However, prospective customers can also see the total number of submitted reviews for each product, which we might reasonably use as a proxy for the popularity of the product in the market. Customers tend to adopt a more popular choice. (a) How many variables would you need to model this system? What would they be? (b) Are there any attractors in this system (i.e. any stable fixed points)? (c) How does the long term behavior of this system depend on the initial condition? (d) If you were head of marketing for Toaster A, what would you adopt as a marketing strategy?

Answer rating: 100% (QA)

a To model this system we would need the following variables 1 Number of reviews for Toaster A 2 Num... View the full answer