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The personal computer industry is very fast moving technology that provides mohvane customers to upgrade with new computers every few years. Brand loyalty is very importa companies try to do things to keep their customers happy. However, some current customer Switch to a different company. Three particular brands, Doorway, Bell, and Compaq, hold the chares of the market. People who own Doorway computers will buy another Doorway in the urchase 80% of the time, while the rest will switch to the other companies in equal prope Dwners of Bell computers will buy Bell again 90% of the time, while 5% will buy Doorway vill buy Compaq. About 70% of the Compaq owners will make Compaq their next purcha= 0% will buy Doorway and the rest will buy Bell. t the present time, each of the three companies has an equal share of the market. a. What is the market share for the next period given the initial market shares?

The personal computer industry is very fast moving technology that provides mohvane customers to upgrade with new computers every few years. Brand loyalty is very importa companies try to do things to keep their customers happy. However, some current customer Switch to a different company. Three particular brands, Doorway, Bell, and Compaq, hold the chares of the market. People who own Doorway computers will buy another Doorway in the urchase 80% of the time, while the rest will switch to the other companies in equal prope Dwners of Bell computers will buy Bell again 90% of the time, while 5% will buy Doorway vill buy Compaq. About 70% of the Compaq owners will make Compaq their next purcha= 0% will buy Doorway and the rest will buy Bell. t the present time, each of the three companies has an equal share of the market. a. What is the market share for the next period given the initial market shares?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Q.4. The personal computer industry is very fast moving technology that provides motivation to customers to upgrade with new computers every few vears. Brand loyalty is very important a companies try to do things to keep their customers happy. However, some current customer may Switch to a different company. Three particular brands, Doorway, Bell, and Compaq, hold the major Shares of the market. People who own Doorway computers will buy another Doorway in their next purchase 80% of the time, while the rest will switch to the other companies in equal proportons. Owners of Bell computers will buy Bell again 90% of the time, while 5% will buy Doorway and 5% will buy Compaq. About 70% of the Compaq owners will make Compaq their next purchase while 20% will buy Doorway and the rest will buy Bell. At the present time, each of the three companies has an equal share of the market. a. What is the market share for the next period given the initial market shares? b. If each brand currently has 200,000 customers who plan to buy a new computer in the next year, how many computers of each type will be purchased? What is the long-run market share of each of the three companies? c.
Transcribed Image Text:Q.4. The personal computer industry is very fast moving technology that provides motivation to customers to upgrade with new computers every few vears. Brand loyalty is very important a companies try to do things to keep their customers happy. However, some current customer may Switch to a different company. Three particular brands, Doorway, Bell, and Compaq, hold the major Shares of the market. People who own Doorway computers will buy another Doorway in their next purchase 80% of the time, while the rest will switch to the other companies in equal proportons. Owners of Bell computers will buy Bell again 90% of the time, while 5% will buy Doorway and 5% will buy Compaq. About 70% of the Compaq owners will make Compaq their next purchase while 20% will buy Doorway and the rest will buy Bell. At the present time, each of the three companies has an equal share of the market. a. What is the market share for the next period given the initial market shares? b. If each brand currently has 200,000 customers who plan to buy a new computer in the next year, how many computers of each type will be purchased? What is the long-run market share of each of the three companies? c.
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