Research on Price Elasticity of Mobile Phone Sales on Taobao Based on Logarithmic Function Model

ABSTRACT

As people become more accustomed to online buying, an increasing number of individuals are purchasing cell phones over the internet. In this paper, the price elasticity of mobile phones from Taobao is estimated using a logarithmic function model, and the link between price elasticity and market share, online sales, and pricing is empirically investigated. This study used data analytic to discover that as the price of a brand with a significant market share drops, the sales volume increases. In addition, this study examines elasticity changes caused by COVID-19 and shows practical implications with proposed business solutions;this study found that The price drop will affect the sales volume, and the sales volume will change with the price change. The findings will give helpful information to internet cell phone vendors. © 2021 IEEE.