ADVANCED ANALYTICS

I
Consumer Choice between house brands and national brands detergent purchases at
Reliance Retail

Section B Group 4
Atul Raj PGP03020
G. SashankPGP04027
Siddharth Modi PGP04051
Sandeep Pandey PGP04074
Soumit Mukherjee PGP04082
Vikas Kumar PGP04092
 1. Do you feel the brand-switching problem represents a
Markov chain? Present its state transition graph

• Markov chain  Same condition are repeated, but the probabilities depend on
the outcome of the previous trial; chain of events; Stochastic process.
• Brand switching  Process of choosing to switch from routine use of one
product or brand to steady use of a different but similar product.

• CAN BRAND SWITCHED BE DESCRIBED USING MARKOV CHAIN???

State Transition Graph
2. Explain your inferences of exhibits 1 and 2 w.r.t.
switching between Sudz to other brands
3. What will be the market share of different brands after 3
periods under promotion? What proportion of Sudz
customers will remain as Sudz customers after 3 periods?
Market share of different
brands after 3 periods under
promotion

9.6 %

Proportion of Sudz customers

that will remain as Sudz
customers after 3 periods

16.7%
4. What is the long-run market share of Sudz under
promotion and no-promotion?
5. If a customer is currently buying Sudz, what is the
probability that the customer will be retained 3 periods
from now, under promotion and no-promotion?
Without Promotion

With Promotion
6. Which brand has more loyal customers? What is the steady-
state retention rate of each of the brands sold at Reliance
retail?