MATHEMATIC MODEL OF THE IMPACT OF ADVERTISING ON PRODUCT SALES IN E-COMMERCE TRANSACTIONS

• Main Author: Annasya Handayani, Sekar
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/73013
• Institution: Institut Teknologi Bandung

The process of purchasing or selling goods or services through the internet is known as electronic commerce (e-commerce). E-commerce market development in Indonesia offers sellers a great opportunity to boost their business performance. In order to compete with others, sellers might engage in endorsing activities, provide free shipping & flash sale offers, and take a benefit from brand ambassadors. In this final project, a model describing the dynamics of impact on product sales in transactions e-commerce will be built endorsement, create an offer flash sale & free delivery, and avail brand ambassador. In the case of the infectious disease model, the created model adapts and modifies the SIR model. The model allows for splitting the population across the two market places, Shopee and Lazada. The model's stability is then examined, as well as parameter estimation and the dynamics that result from numerical simulation. In order to calculate the pace of growth of Shopee and Lazada customers based on page views and checkout rate (CO) data, parameter estimate is used. Based on the outcomes of the numerical simulation, it is evident that endorsement, flash sales, free shipping, and brand ambassador availability have a significant impact on changes in the customer population. According to the outcomes of parameter estimate, there is an endorsement effect of 0,399/day on the growth of Shopee customers and 0,448/day on the growth of Lazada customers. Free shipping and offer of flash sales have a day-to-day increase in Shopee and Lazada customers, 0,778/day and 0,186/day respectively. Additionally, brand ambassador effect of 1,025/day on the increase in Shopee consumers and 0,181/day on the increase in Lazada consumers.