A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 30% of new purchasers in this market will ultimately try this brand, and of these, about 55% will purchase it in the future. Preliminary data also suggest that the brand will attract heavier-than-average buyers, such as those who exercise frequently and participate in sports, and that they will purchase about 15% more than the average buyer. Complete parts a and b. a. Calculate the long-run market share that the company can anticipate under these assumptions. The long-run market share is (Type an integer or a decimal rounded to three decimal places as needed.) b. Let T = proportion of customers trying the brand, R = proportion of customers who repurchase, and B = buyer index (which is 1.0 for the average buyer). Develop a general model for predicting long-run market share, L. (Simplify your answer.)
A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 30% of new purchasers in this market will ultimately try this brand, and of these, about 55% will purchase it in the future. Preliminary data also suggest that the brand will attract heavier-than-average buyers, such as those who exercise frequently and participate in sports, and that they will purchase about 15% more than the average buyer. Complete parts a and b. a. Calculate the long-run market share that the company can anticipate under these assumptions. The long-run market share is (Type an integer or a decimal rounded to three decimal places as needed.) b. Let T = proportion of customers trying the brand, R = proportion of customers who repurchase, and B = buyer index (which is 1.0 for the average buyer). Develop a general model for predicting long-run market share, L. (Simplify your answer.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 30% of new purchasers in this market will ultimately try
this brand, and of these, about 55% will purchase it in the future. Preliminary data also suggest that the brand will attract heavier-than-average buyers, such as those who exercise frequently and
participate in sports, and that they will purchase about 15% more than the average buyer. Complete parts a and b.
a. Calculate the long-run market share that the company can anticipate under these assumptions.
The long-run market share is
(Type an integer or a decimal rounded to three decimal places as needed.)
b. Let T = proportion of customers trying the brand, R = proportion of customers who repurchase, and B = buyer index (which is 1.0 for the average buyer). Develop a general model for
predicting long-run market share, L.
(Simplify your answer.)
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