Question
Suppose we are evaluating the marketing strategy for a company. The agents in the company call the customers by phone and the company is interested
Suppose we are evaluating the marketing strategy for a company. The agents in the company call the customers by phone and the company is interested in the customer behavior, in other words the company is interested in whether he/she eventually buys the product. The first target group consists of potential customers who has never been contacted about buying the product. Right after one call, with 60% probability, the customer provides a feedback as a low interest in the product. Similarly, the customer provides a feedback as a high degree of interest with 30% probability. With 10% probability the customer is deleted from database of potential customers. After another call, customers with low degree of interest in the product buy the product with 30% probability, they are deleted from the database of the potential customers with 20% probability, 30% of them provide a low degree of interest in the product once again and 20% of them provide a high degree of interest in the product. For customers with a high degree of interest in the product, they buy the product with 50% probability, they provide a high degree of interest feedback with 40% probability and they provide a low degree of interest in the product with 10% probability after another call.
a. Find the probability that a new potential customer will eventually buy the company's product.
b. Find the probability that a low interest potential customer will ever be deleted from the database.
c. On the average, find the number of times will a new potential customer be called before either buying the product or being deleted from the database.
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