Modeling Brand Switching in Consumers’ Products

Abstract

In this study, we examined the relevance of product attributes to switching rates with reference to three brands of soft drinks. Markov chains were employed to determine the brand loyalty of the consumers of the soft drinks and the future market shares in the long run.

Sequel to the balance vector generated, it was discovered that the consumers exhibited the most brand loyalty towards Fanta.

Keywords: Brand Switching, Brand Loyalty, Markov Chains, Market Shares, Transition Matrix.