=14-28 Sandy Sprunger is part owner in one of the largest quick-oil-change operations for a medium-sized city
Question:
=14-28 Sandy Sprunger is part owner in one of the largest quick-oil-change operations for a medium-sized city in the Midwest. Currently, the firm has 60% of the market. There are a total of 10 quick lubrication shops in the area. After performing some basic marketing research, Sandy has been able to capture the initial probabilities, or market shares, along with the matrix of transition, which represents probabilities that customers will switch from one quick lubrication shop to another. These values are shown in the table on the next page:
Initial probabilities, or market share, for shops 1 through 10 are 0.6, 0.1, 0.1, 0.1, 0.05, 0.01, 0.01, 0.01, 0.01, and 0.01.
(a) Given these data, determine market shares for the next period for each of the 10 shops.
Step by Step Answer:
Quantitative Analysis For Management
ISBN: 9789332578692
12th Edition
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna