Suppose that Coke and Pepsi are fighting for the cola market. Each week, each person in the

Question:

Suppose that Coke and Pepsi are fighting for the cola market. Each week, each person in the market buys one case of Coke or Pepsi. If the person’s last purchase was Coke, there is a 0.90 probability that this person’s next purchase will be Coke; otherwise, it will be Pepsi. (We are considering only two brands in the market.) Similarly, if the person’s last purchase was Pepsi, there is a 0.80 probability that this person’s next purchase will be Pepsi; otherwise, it will be Coke.

Currently half of all people purchase Coke, and the other half purchase Pepsi. Simulate 1 year of sales in the cola market and estimate each company’s average weekly market share. Do this by assuming that the total market size is fixed at 100 customers. (Hint: Use the RISKBINOMIAL function.)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

Question Posted: