STION ONE (20 MARKS) In an effort by RETRAK to help the Kenyan retailers, a...
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STION ONE (20 MARKS) In an effort by RETRAK to help the Kenyan retailers, a recent market study on three Kenyan retailers Quickmart, Naivas and Powerstar shows that the monthly clientele turnover is 1,700,000 among the three. This data is gathered in an attempt to investigate the loyalty of the clientele for the three chain stores Quickmart, Naivas and Powerstar. The study revealed the at the end of the month of May 2020 the following switching patterns were observed. Quickmart Naivas Powerstar TO 180,000 360,000 Quickmart 60,000 400,000 From 50,000 100,000 Naivas 350,000 50,000 Powerstar 150,000 The suppliers get this data and are interested in knowing the future of their business. They hire you to: (i) Determine the transition matrix of the market controlled by the three chains. (4 Marks) ii Determine the market share percentage and number of clients visiting each of the three chain stores at the end of August 2020. Marks) (iii) Using appropriate calculations, advise on the nature of business in the long-run. (6 Marks)
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