Understanding the factors driving product searches : an analysis using panel data

Abstract

This study examines the factors that influence consumer product search behavior on e-commerce platforms, specifically focusing on the leading marketplaces in Indonesia, namely Shopee, Tokopedia, and Lazada using a panel data approach. This research analyzes the impact of organic and paid search strategies on organic traffic, which is an important driver for e-commerce performance. Utilizing data from 2019 to 2022, obtained from SEMrush, this study explores the effects of organic keywords, organic traffic cost, paid keywords, and paid traffic cost on the organic traffic of these platforms. In addition, the study also included dummy variables to assess the influence of the COVID-19 pandemic and peak seasons on consumer search behavior. The findings reveal that organic factors, especially organic keywords and traffic costs, significantly increase organic traffic, highlighting the importance of SEO (Search Engine Optimization) in e-commerce strategies. In contrast, paid search strategies show a complex relationship with organic traffic, with paid keywords negatively impacting organic traffic, while paid traffic costs show a more nuanced effect. The COVID-19 era and peak season were found to significantly alter search behavior, with the pandemic driving an important shift towards online shopping, thus intensifying competition in organic search. Economically, the results underscore the critical role of digital marketing in shaping consumer behavior and the broader implications for market efficiency in fast-growing Indonesia.