A company is trying to calculate the long-run market share of a new men's deodorant. They believe that 35% of new purchasers in the market will ultimately try this brand based on initial marketing studies. They believe that customers will purchase their brand about 40% of the time in the future. Beginning data also suggest that the brand will attract heavier-than-average buyers, such as those who exercise frequently and participate in sports, and that they will purchase about 15% more than the average buyer.
1. Determine the long-run market share that the company can anticipate under these assumptions.
2. Expand a general model for predicting long-run market share.