Archive for category Decision Modeling

Does the power of Social Media influences E-Commerce Business?

ecommerce-2140603_640Social media has become a great part of someone’s life. People can’t wait to update their social media accounts, or at least get updated about the world simply by watching their timeline. Social media here is defined as every internet-based application that allows you to create and exchange contents with other people around the globe.  The number of Internet users in Indonesia has reached 132.7 million people in 2016. With a number this high, Internet also is seen as a potential business platform. In 2016 the total of e-commerce in Indonesia has reached 26.2 million units, with its biggest selling product is in the fashion segment. Internet is not only giving advantages for companies for their business, but also some threats regarding the tougher competition in the market, especially for e-commerce companies.

A study has found that marketing through social media gave significant effect on increasing trust and loyalty of customers towards a brand. Therefore, companies see social media as a potential marketing medium, to retain their competitiveness in the market. By increasing their customers’ trust and loyalty towards their brand, companies can focus on expanding their market and gaining new customers.

According to several papers that this research was based on, there are five social media marketing (SMM) factors, (1) Website Security, (2) Clear & updated website, (3) Social media tools activity, (4) Online advertisement, and (5) Online interactivity. The result of this research shows that three of those factors, which are (1) Clear & updated website, (2) Online advertisement, and (3) Online interactivity, give significant effect on customer’s brand trust. While brand trust gives significant effect on brand loyalty. Therefore it can be concluded that those 3 factors of SMM give also significant effect in brand loyalty indirectly through brand trust.

We develop a structural equation model (SEM) to see which and how each social media factors influencing the buying behavior of the customer. Our models show that there are 3 factors that must be the focus of the e-commerce sites when using the social media platform.

This research is conducted by Annissa Tayara Callista and Akhmad Hidayatno

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Educating society about energy transition through excitement of a game? Why not!

Transergy WelcomeThe increase of energy consumption especially in the form of oil is being an issue for certain countries including Indonesia. Within the rise of 3.99% of energy consumption annually, transportation sector having the largest portion of energy consumption (Indonesia Outlook Energy, 2016). There are 17.523.967 vehicles in Jakarta, the capital of Indonesia, with 74.66% of the numbers are motorbikes and 18.64% are cars. The use of oil in most land transportation vehicles has lead oil to be the most used fuel by the market share of 32% compared to other type of fuel. Unfortunately, the oil production in Indonesia has been constantly decreased within 4.41% per year. It leads Indonesia to be the net importer of oil and depending on the oil supply by other countries. The condition of being net importer of oil having many effects of short and long run in Indonesia’s economic. Vacation Menuthe respond to the increase of oil consumption, the government releasing an energy diversification program to reduce oil consumption by substitute the oil to other type of fuel like gas, biofuel, renewable energy and many others. One of the diversification plan is the conversion of oil to natural gas program. This program has been conducted since 1987, however until 2011 it only achieved 0.03% conversion rate. Based on the study from Bureau of Oil and Gas, one of the success key for conversion from oil to gas program is through education and socialization to the society. Conversion from oil to gas is a kind of energy transition which is defined by Chappin (2011) as the socio-technical transition in the scale of sector. To do the simulation about energy transition physical and social components from the energy transition system needs to be captured.

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