The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities:
|
From
|
Special B
|
To
|
MDA
|
|
Special B
|
0.90
|
|
0.10
|
|
MDA
|
0.05
|
|
0.95
|
a. Which brand appears to have the most loyal customers? Explain.
b. What are the projected market shares for the two brands?