Advantages and Disadvantages of Utilizing Markov Chains in a Digital Marketing Strategy to Predict E-Commerce Sales

Authors : Lala Amalia; Abdul Majid Junaidi; Sertiningsih; Fiki Hayatuki; Sri Muliani
article cite 1 Year 2024
source: Scientia. Technology, science and society.
Abstract

This study analyzes competition among three major e-commerce platforms in Indonesia - Shopee, Lazada, and Tokopedia - using the Markov Chain model. The primary focus is to evaluate the marketing mix, including price, promotion, security, service, and product availability, within the Mataram City e-commerce market. Data on consumer use of these platforms are analyzed to predict market share and consumer behavior over time. The findings demonstrate how the Markov Chain model can predict shifts in market share among these platforms and provide insights into the future effectiveness of their marketing strategies. This model enables companies to optimize promotional costs and refine marketing approaches, preparing them to compete in an increasingly competitive market.


Concepts :
Technology Adoption and User Behaviour
Big Data and Business Intelligence
Customer churn and segmentation
article cite 1 Year 2024 source Scientia. Technology, science and society.
SDGs
Industry, innovation and infrastructure
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2024 1