An assessor model was built for a new Soda drink. An experimentwas conducted to understand the customers’ repeat-purchase behaviorwhich shows that probability that a customer who tried otherproduct now will try new product later is 0.12 and probability thatcustomer who tried new product now will also buy new product lateris 0.85. Calculate repeat rate.
Expert Answer
As per the Assessor model, the repeat rate S is given by thebelow formula
where
P(n,o) is the probability that a customer who has last purchaseda product of another brand will now try the new brand on nextpurchase
P(n,n)
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