The matrix of transition probabilities below deals with brand loyalty to Bark Bits and Canine Chow dog food. $$\begin{array} { c | c c }
\text { Current } & { \text { Next Purchase } } \
\text { Purchase } & \text { Bark Bits } & \text { Canine Chow } \
\hline \text { Bark Bits } & .75 & .25 \
\text { Canine Chow } & .20 & .80
\end{array}$$
a.What are the steady state probabilities?
b.What is the probability that a customer will switch brands on the next purchase after a large number of periods?

Question

The matrix of transition probabilities below deals with brand loyalty to Bark Bits and Canine Chow dog food. $$\begin{array} { c | c c } 
\text { Current } & { \text { Next Purchase } } \
\text { Purchase } & \text { Bark Bits } & \text { Canine Chow } \
\hline \text { Bark Bits } & .75 & .25 \
\text { Canine Chow } & .20 & .80
\end{array}$$ 
a.What are the steady state probabilities?
b.What is the probability that a customer will switch brands on the next purchase after a large number of periods?

Quizplus · Accepted Answer

The Answer of The matrix of transition probabilities below deals with brand loyalty to Bark Bits and Canine Chow dog food. $$\begin{array} { c | c c } 
\text { Current } & { \text { Next Purchase } } \
\text { Purchase } & \text { Bark Bits } & \text { Canine Chow } \
\hline \text { Bark Bits } & .75 & .25 \
\text { Canine Chow } & .20 & .80
\end{array}$$ 
a.What are the steady state probabilities?
b.What is the probability that a customer will switch brands on the next purchase after a large number of periods?

The Matrix of Transition Probabilities Below Deals with Brand Loyalty