Decision support system of discount pricing analysis using method of elimination et choix traduisant la realite (ELECTRE)

Abstract

The development of e-commerce site operators in Indonesia is now faced with intense competition for defending the market segment, especially regarding how e-commerce sites are attracting consumers through specic marketing strategies. This study implements a decision support system approach to help marketers to determine price discount alternatives using the Elimination et Choix Traduisant la Realite (ELECTRE) method. The ELECTRE method is widely recognized for having good performance in analyzing customer behavior criteria, however, there is little information about discount analysis using the ELECTRE method. This study implements a method for consumer behavior simulation that can be aected by the criteria to make a purchase on a simulated e-commerce website. Our model estimates three parts of the matrices' analysis: (a) average value of discounted price (DP), (b) average value of pro- duct brand (PB), and (c) average value of purchase decision (PD). We used these as the main alternatives, e.g., price discounts as rst alternative (A1), brand discount as second alternative (A2), and purchase discount as third alternative (A3). Based on the results of the dominant aggregation matrix, the study found that the results are dominated by brand discount (A2). In other words, it is recommended for the decision maker to focus their discount on certain brands more precisely as a marketing strategy than price discount or purchase discount.