IA idea · Networks, graphs & algorithms

Will one phone brand take over? Brand loyalty as a Markov chain

AI HL Solid Also in: Statistics, Probability, Finance

Research question

Using survey data on which brand students switched from and to at their last phone upgrade, what long-term market shares does a Markov chain predict, and how sensitive are they to loyalty rates?

Adapt it: change the place, the data or the comparison until the question is yours.

Why it makes a good exploration

Markov chains model any system where people move between states. Surveying real switching behaviour gives you a transition matrix built from your own data.

The mathematics you'll need

  • Transition matrices from survey data
  • Matrix powers for future shares
  • Steady-state vectors and eigenvectors
  • Sensitivity analysis

Course labels show where a technique sits; using maths from outside your course is fine if you explain it clearly and say it is new to you.

Where the data comes from

Survey 60+ people (students and adults) about their previous and current phone brand.

Cite every source in a footnote where you use it and in your bibliography. Check the licence of any dataset you download.

A possible outline

  1. Design the survey and define states.
  2. Build the transition matrix.
  3. Predict shares after several upgrades.
  4. Find the steady state.
  5. Reflect on sampling, new brands and changing loyalty.

Pitfalls that cost marks

  • Too few people in some categories.
  • Assuming transition probabilities stay constant without comment.
  • Rows/columns not summing to 1.

Showing personal engagement

  • Include your own switching story.
  • Compare with published market shares.
  • Test how a price change (a change in loyalty) affects the steady state.

See Criterion C: personal engagement for what examiners look for.

Taking it further

Compare the survey of students with a survey of adults and discuss which chain is more stable.

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