There Is a 30% Chance That Any Current Client of Company

question 51

Essay

There is a 30% chance that any current client of company A will switch to company B this year.There is a 40% chance that any client of company B will switch to company A this year.If these probabilities are stable over the years,and if company A has 500 clients and company B has 300 clients,
(a)how many clients will each company have next year?
(b)how many clients will each company have in two years?

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Definitions:

Social Influence

The effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behavior.

Robert Cialdini

A psychologist recognized for their contributions to understanding persuasion, adherence, and negotiating practices.

Foot-in-the-Door Technique

A persuasion strategy where a small request is made first to increase the likelihood of compliance with a larger request later.

Reciprocity Norm

The expectation that people will respond favorably to each other by returning benefits for benefits, and responding with either indifference or hostility to harms.