Simplified Parfitt-Collins model
– Say that a break-even market share required is 6%. Based on market research I conclude that 30% of those who are aware try the product. Furthermore, only 40% of those who try become repeat buyers. How much awareness do I need?
– [%aware]*[%try]*[%repeat] = market share
– [%A]*[.30=%try]*[.40=%repeat] = .06
– [%A]*.12 = .06
– Implies that 50% must become aware!
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