Markov Chain Model in Measuring Brand Switching
of Cooking Oil
Muhammad Dharma Tuah Putra Nasution
1*
, Nashrudin Setiawan
1
, Yossie Rossanty
1
,
Irawan
1
,Solly Aryza Lubis
2
{dharma_nasution@dosen.pancabudi.ac.id
*
}
1
Faculty of Social Science, Universitas Pembangunan Panca Budi, Medan, Indonesia
2
Faculty of Science and Technology, Universitas Pembangunan Panca Budi, Medan, Indonesia
Abstract: This research aims to explore the brand switching of cooking oil to other
brands made by the purchasers, especially homemakers. Another goal is to analyze the
various considerations of homemakers when choosing and deciding to switch to another
brand. The authors also explain how the market share of cooking oil brands in the present
and future and use descriptive analysis by presenting the results of information from
homemakers as consumers of various brands of cooking oil. The data collected in this
research are primary and secondary data. The result of this study is that consumers who
switched to Tropical and Sania were more than consumers who moved from both brands.
Meanwhile, Sunco consumers are the most consumers switching to other brands. The
most popular brand of cooking oil is Bimoli. The next sequence is Tropical and Sania.
Most consumers choose Bimoli cooking oil because this oil is classified as a famous
product, easily obtained, and the habits of the family. Unlike Tropical, most consumers
choose because of the economical price. For Sania, consumers who choose this brand is
due to nutritional value information and is classified as a famous brand. The results also
show that market share is still dominated by Bimoli, followed by Tropical and Sania.
Bimoli's market share growth is predicted to grow by 2.4 percent. A significant market
share increase occurred in Sania, while there was a decrease in market share for Tropical.
Keywords: Markov Chain, Brand Equity, Brand Switching, Market Share, External
Factor, Internal Factor.
1. Introduction
Products and brands have to fight competition. A reason is a rapid advancement of
technology and the more creative marketing concepts and promotional strategies launched by
all companies. The market will become more competitive and more crowded. Brands
competition is circulating in the market even more fierce. In addition to current promotion, the
market has now entered the digital era. All forms of promotion have entered and played in the
digital realm.It is forming its market with many opportunities ready to be utilized for whom
are ready. In the end, there are only one or two consumer product brands selected in one
product category. For instance, many consumers like and select one of the brands in the
market. Many factors can cause consumers unsatisfied with a brand of product. These factors
may come from the product itself, and it can come from the outside. Many products features
do not match what is being promoted. It is found in the term, "Over promise under deliver." A
brand provided the high expectation to customers when products promoted should be careful
with risks that may be faced later if the product is unable to fulfill the customer's expectation.
Conversely, if the promotion provided is reasonable and attractive, consumers will be more
satisfied if the product can fulfill the consumers' expectations. Consumers will be more
tolerant of a brand because previously the brand does not over-promise. Consumers want the
ICASI 2019, July 18-19, Banda Aceh, Indonesia
Copyright © 2019 EAI
DOI 10.4108/eai.18-7-2019.2288574