Bark Bits Company Is Planning an Advertising Campaign to Raise

question 3

Essay

Bark Bits Company is planning an advertising campaign to raise the brand loyalty of its customers to 0.80.
a.The former transition matrix is as follows:

What is the new one?
b.What are the new steady-state probabilities?
c.If each point of market share increases profit by $15,000,what is the most you would pay for the advertising?

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Definitions:

Innate Releasing Mechanism

A hypothetical mechanism in the brain considered to be triggered by specific stimuli, leading to certain patterns of behavior.

Social Releaser

A stimulus originating from one individual that triggers a social response or behavior in another individual.

Male Courtship Ritual

Involves the behaviors and activities performed by males in a species to attract a mate.

Consummatory

Relating to the completion of an action or process, such as the act of consuming food or drink.