An On-Line Personalized Promotion Decision Support System for Electronic Commerce

With the development of the Internet and Electronic Commerce (EC), enterprises have overcome the space and time barriers and are now capable of serving customers electronically. However, it is a great challenge to attract and retain the customers over Internet. One approach is to provide the responsive personalized service to satisfy the customer demand and promote sales at the first time. Hence, in this paper, we propose a decision support system which develops best promotion products based on combinations of different marketing strategies, pricing strategies, and customer behaviors evaluated in terms of multiple criteria. Data mining techniques are utilized to help the business discover patterns to develop on-line sales promotion products for each customer for enhancing customer satisfaction and loyalty. The proposed system consists of four components: (1) establishing marketing strategies, (2) promotion pattern model, (3) personalized promotion products, and (4) on-line transaction model. A simple example is given to illustrate the implementation and application of proposed decision support system.