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Brown's dry cleaning is trying to predict the long run market share of delivery dry cleaning...

Brown's dry cleaning is trying to predict the long run market share of delivery dry cleaning services. Based on an initial market analysis, the percentage of new customers trying the delivery dry cleaning service is 33% of the market share. Of these new customers, 20% will use the delivery service in the future. In addition, preliminary data suggests that this customer base will use the service 10% more than the average buyer. What is the long run market share of the product? Please enter your answer as a decimal not a percentage rounded to 2 decimal places.

Math   Statistics-And-Probability   
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Answer #1

It is required to calculate the long run market share. In this situation there exists 33 percent of the customer that are trying the service. Out of 33% there is chances that 20% of the people will use the service in futire.

The percentage at which the Market will use the service in future is calculated below:

=0.33*0.20

=0.066

When the customer base will use service 10% more than average users, the percentage of market share in long run trends is calcualted below:

=0.066*1.1

=0.0726

=7.26%

Long Run Market share is 7.26%

Hope this will be helpful. Thanks and God Bless you:)

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