COMPUTER ASSISTED SIMULATION OF MARKET SHARES FOR COMPETING PRODUCTS USING MARKOV CHAINS

Autor/autori: Radu BUCEA-MANEA-TONIS, Rocsana BUCEA-MANEA-TONIS

Abstract: Article implements Markov chains in prediction of market shares for competing products, in a given time horizon. Practical approach is implemented in C code, recursively generates transition probabilities to determine the limit vector ?. The case study is performed on the data of a company producing computer motherboards. Ms.Excel is used to calculate the vector of initial market shares, the matrix of transition probabilities, steady state and recurrence time. Based on the results is the economic interpretation in terms of marketing manager.

Keywords: Markov chains, probabilities, forecast, market share, marketing simulation

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