The Dynamics of Brand Switching Behaviour of the Consumers of Rural and Urban Areas: A Markovi an Approach

Abstract

This research paper is an attempt to apply the probabilistic methods of Markov Chains for a systematic study on the brand switching behaviour of the customers. The inference of this approach is for developing marketing strategy. The purpose of this paper is to predict the brand switching behaviour of the customers with respect to staple goods. The staple products considered here are rice, tea and toothpaste. The intent is to introduce the basic theory of Markov Chain Model followed by, three examples considered to analyze the market share of rice, tea and toothpaste. Microsoft Excel is used to calculate the numerical solution. By the scientific as well as reasonable information of the market share, it is intended to provide positions to the specific brands of rice, tea and tooth paste accordingly.

Keywords: Markov Chain Model; Staple Product, Market Share; Scientific Information; Reasonable Information.