Assessment of Market Share and Brand Preference With Markov Chain and Factor Analysis Approach in East Java

Abstract

Competition in the consumer product business is very tight hence, marketing strategies are needed to maximise product marketing. In the context of East Java, Indonesia, marketing of detergent products is complicated because there are many competing companies, and the factors concerning loyal consumers still need to be discovered. The present research aims to determine the right marketing strategy for each detergent brand by knowing consumer reactions and responses to the marketing strategies that companies implement. This research determines consumers’ perceptions of certain detergent products which influence their purchasing behaviour and awareness of various risks of the products that they consume. Weighted data on Markov Chain is collected by utilising survey questionnaires, and the current behaviour of consumers is analysed to predict their behaviour regarding changes in detergent product selection through probabilistic information that can be used to assist decision-making. By using the Markov chain method, it is found that market share projections for the detergent products under study can be carried out. The factor that has the potential to cause consumers of certain detergent products to switch to other detergent products is the lack of fulfilment of product variations, and types. This research contributes to obtaining appropriate indicators and attributes to increase consumer perceptions of a product as part of a superior marketing strategy.