DYNAMIC MODEL OF CONSUMER TRUST FORMATION TOWARDS COMPANY PRODUCTS UNDER THE INFLUENCE OF ADVERTISING ACTIVITY
Abstract
An analysis of current scientific developments regarding marketing methods for product promotion in the market, particularly advertising activities, has been conducted, taking into account economic-mathematical support. The analysis identified the main shortcomings and debated issues of current scientific developments on marketing methods of product promotion, especially in advertising activities. These include limited sample sizes in studies, which are not always representative and create methodological problems in measuring the effectiveness of advertising campaigns; concerns about consumer privacy due to the collection of personal data for personalization; the opacity of machine learning algorithms complicating the understanding of their operation and decision-making processes; and the sensitivity of stochastic modeling using Bayesian approaches to the choice and justification of input parameters, which affects the final calculation results. Additionally, there are significant technological challenges associated with implementing existing methods and models into the operations of any enterprise, which can hinder practical application and scalability. The study of the structural-functional relationships in forming consumer trust in the products of passive demand enterprises in the processing industry through advertising activities has shown that the increase or decrease of the target indicator is a result of the interplay of multiple factors: advertising effectiveness, the level of meeting consumer expectations, and the share of the target audience reached. The proposed dynamic model allowed for the assessment of the development trajectory of the economic system based on these indicators, with a justification for the duration of the advertising campaign based on the coverage of target market segments. The scientific novelty of this work lies in the economic-mathematical model for forming consumer trust in company products through advertising activities, based on economic dynamics tools. Unlike existing models, it considers the factor of meeting consumer expectations and allows for the justification of the advertising campaign duration based on the coverage of target market segments. This model provides a more holistic and realistic approach to understanding and predicting the impact of advertising on consumer trust, which can be crucial for developing effective marketing strategies and improving overall business performance.
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