Journal of Computations & Modelling

Analysis of the Preference Shift of Customer Brand Selection and Its Matrix Structure -Expansion to the second order lag

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• Abstract

   

  It is often observed that consumers select the upper class brand when they buy the next time. Suppose that the former buying data and the current buying data are gathered. Also suppose that the upper brand is located upper in the variable array. Then the transition matrix becomes an upper triangle matrix under the supposition that the former buying variables are set input and the current buying variables are set output. The goods of the same brand group would compose the Block Matrix in the transition matrix. Condensing the variables of the same brand group into one, analysis becomes easier to handle and the transition of Brand Selection can be easily grasped. In this paper, equation using transition matrix stated by the Block Matrix is expanded to the second order lag and the method of condensing the variable stated above is also applied to this new model. Planners for products need to know its brand position whether their brand is upper or lower than other products. Matrix structure makes it possible to ascertain this by calculating consumers’ activities for brand selection. Thus, this proposed approach makes it possible to execute an effective marketing plan and/or establishing new brand.