Markov Model

Marketing dictionary

Markov Model

Brand switching matrices (from time t - 1 to t) are sometimes envisioned as arising from a stationary first-order Markov model. This model assumes that only the brand chosen in t - 1 affects brand choice at t. The transition probability matrix describes the brand choice. Higher order models (i. e., in which choice at t is dependent on several previous choices) with varying transition probabilities have also been proposed. Source: AMA

See: Elasticon Brand Choice Models

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