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. A 0.21 A B 0.1 с 0.14 D 0.23 E 0.24 0.14 0.24 0.33 0.23 0.27 с 0.15 0.27 0.13 0.14 0.12 D 0.23 0.24 0.17 0.16 0.14 E 0.27 0.15 0.23 0.24 0.23 How long on the average will it take for a brand B customer to switch to brand E?
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. A 0.21 A B 0.1 с 0.14 D 0.23 E 0.24 0.14 0.24 0.33 0.23 0.27 с 0.15 0.27 0.13 0.14 0.12 D 0.23 0.24 0.17 0.16 0.14 E 0.27 0.15 0.23 0.24 0.23 How long on the average will it take for a brand B customer to switch to brand E?
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Transcribed Image Text: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.
A
B
A
0.21
0.1
с 0.14
B
0.14
0.24
0.33
0.17
0.23
0.16
0.27
0.14
How long on the average will it take for a brand B customer to switch to brand E?
D
E
с
0.15
0.27
0.13
0.14
0.12
0.23
0.24
D
0.23
0.24
E
0.27
0.15
0.23
0.24
0.23
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