Explications:
Three companies Benfel Ltd, Cromwell Ltd and Samtec Ltd were recently launched in
the Kenyan market. The companies have operated in the Kenyan market for a few
months now. At the beginning of the month of August 2021, a survey on monthly brand
switching behavior was conducted on a representative sample among customers of the
three companies. The survey revealed that Benfel Ltd retains 70% of its customers and
loses 20% to Cromwell Ltd and 10% to Samtec Ltd. Similarly, Cromwell Ltd retains 60%
of its customers and loses 30% to Benfel Ltd and 10% to Samtec Ltd. Furthermore,
Samtec Ltd retains 50% while it loses 30% to Cromwell Ltd and 20% to Benfel Ltd