A company is trying to predict the long run market share of a new men’s deodorant. 8 Based on initial marketing studies, they believe that 35% of new purchasers in this market will ultimately try this brand. They believe that customers will purchase their brand about 60% of the time 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 20% more than the average buyer.
a. Calculate the long run market share that the company can anticipate under these assumptions.
b. Develop a general model for predicting longrun market share.