Keyword
Retail Revenue Management; Merchandise; Elasticity
Abstract
Recent advances in data collection technology and computing power yield opportunities to apply robust analytical methods to retail. Additional profitability can be obtained by leveraging data-mining techniques and optimization models to decisions that have heretofore been based heavily on experiential understanding. Scientific methods can be applied to the revenue-driving areas of merchandise such as assortment, pricing, placement, and promotion to obtain further insight and make more precise decisions.
Full Text : PDF
References
- Bijmolt, T.H.A., van Heerde, H.J., Pieters, R.G.M., 2005. New empirical generalizations on the determinants of price elasticity. Journal of Marketing Research 42 (2), 141-156.
- Bitran, G., Caldentey, R., 2003. An overview of pricing models for revenue management. Manufacturing and Service Operations Management 5 (3), 203-229.
- Borle, S., Boatwright, P., Kadane, J.B., Nunes, J.C., Shmueli, G., 2005. The effect of product assortment changes on customer retention. Marketing Science 24 (4), 616-622.
- Boyd, E.A., Bilegan, I.C., 2003. Revenue management and e-commerce. Management
- Science 49 (10), 1363-1386.
- Chebat, J.C., Michon, R., 2003. Impact of ambient odors on mall shoppers’ emotions, cognition, and spending: A test of competitive causal theories. Journal of Business Research 56 (7), 529-539.
- Chong, J.K., Ho, T.H., Tang, C.S., 2001. A modeling framework for category assortment planning. Manufacturing and Service Operations Management 3 (3), 191- 210.
- Curhan, R.C., 1973. Shelf space allocation and profit maximization in mass retailing. Journal of Marketing 37 (3), 54-60.
- Desmet, P., Renaudin, V., 1998. Estimation of product category sales responsiveness to allocated shelf space. International Journal of Research in Marketing 15 (5), 443-457.
- Dreze, X., Hoch, S.J., Purk, M.E., 1994. Shelf management and space elasticity. Journal of Retailing 70 (4), 301-326.
- Fisher, M.L., Vaidyanathan, R., 2010. An algorithm and demand estimation procedure for retail assortment optimization. Working paper, Operations and Information Management Department, The Wharton School, University of Pennsylvania.
- Hardesty, D.M., Bearden, W.O., Carlson, J.P., 2007. Persuasion knowledge and consumer reactions to pricing tactics. Journal of Retailing 83 (2), 199-210.
- Harrell, G.D., Hutt, M.D., Anderson, J.C., 1980. Path analysis of buyer behavior under conditions of crowding. Journal of Marketing Research 17 (1), 45-51.
- Hoch, S.J., Bradlow, E.T., Wansink, B., 1999. The variety of an assortment. Marketing Science 18 (4), 527-546.
- Kim, B.D., Blattberg, R.C., Rossi, P.E., 1995. Modeling the distribution of price sensitivity and implications for optimal retail pricing. Journal of Business and Economic Statistics 13 (3), 291-303.
- Kimes, S.E., 1989. The basics of yield management. Cornell Hotel and Restaurant Administration Quarterly 30 (3), 14-19.
- Kök, A.G., Fisher, M.L., 2007. Demand estimation and assortment optimization under substitution: Methodology and application. Operations Research 55 (6), 1001-1021.
- Krishnamurthi, L., Raj, S.P., 1991. An empirical analysis of the relationship between brand loyalty and consumer price elasticity. Marketing Science 10 (2), 172-183.
- Lattin, J.M., McAlister, L., 1985. Using a variety-seeking model to identify
- substitute and complementary relationships among competing products. Journal of Marketing Research 22 (3), 330-339.
- Li, H.L., Chang, C.T., Tsai, J.F., 2002. Approximately global optimization for assortment problems using piecewise linearization techniques. European Journal of Operational Research 140 (3), 584-589.
- Littlewood, K., 1972. Forecasting and control of passenger bookings. 12th AGIFORS Symposium Proceedings 12: 95-117, Nathanya, Israel.
- McCarthy, E.J., 1981. Basic Marketing: A Managerial Approach. Irwin Professional Publishing, Homewood, IL.
- Morrison, D.G., 1979. Purchase intentions and purchase behavior. Journal of Marketing 43 (2), 65-74.
- Moyer, M.S., 1972. Management science in retailing. Journal of Marketing 36 (1), 3-9.
- Noone, B.M., Kimes, S.E., Renaghan, L.M., 2003. Integrating customer relationship management and revenue management: A hotel perspective. Journal of Revenue and Pricing Management 2 (1), 7-22.
- Parker, P.M., 1992. Price elasticity dynamics over the adoption life cycle. Journal of Marketing Research 29 (3), 358-367.
- Parsons, A.G., 2003. Assessing the effectiveness of shopping mall promotions: Customer analysis. International Journal of Retail and Distribution Management 31 (2), 74-79.
- Pierce, A., 2009. The power of digital signage. Dealerscope, http://www.dealerscope.com/article/how-new-merchandising-solutions-can-help-drive-sales-profits-402688_1.html, accessed 2 February 2010.
- Sayman, S., Hoch, S.J., Raju, J.S., 2002. Positioning of store brands. Marketing Science 21 (4), 378-397.
- Schindler, R.M., 2006. The 99 price ending as a signal of a low-price appeal. Journal of Retailing 82 (1), 71-77.
- Sorensen, H., 2003. The science of shopping. Market Researching 15 (3), 30-35.
- Stassen, R.E., Waller, M.A., 2002. Logistics and assortment depth in the retail supply chain: Evidence from grocery categories. Journal of Business Logistics 23 (1), 125-143.
- Upshaw, L.B., 1995. Building Brand Identity: A Strategy for Success in a Hostile Marketplace. John Wiley, New York, NY.
- Urban, T.L., 1998. An inventory-theoretic approach to product assortment and shelf- space allocation. Journal of Retailing 74 (1), 15-35.
- van Nierop, E., Fok, D., Franses, P.H., 2008. Interaction between shelf layout and marketing effectiveness and its impact on optimizing shelf arrangements. Marketing Science 27 (6), 1065-1082.
- van Ryzin, G., Mahajan, S., 1999. On the relationship between inventory costs and variety benefits in retail assortments. Management Science 45 (11), 1496-1509.
- Yang, Y.H., Dudoit, S., Luu, P., Lin, D.M., Peng, V., Ngai, J., Speed, T.P., 2002. Normalization for cDNA microarray data: A robust composite method addressing single and multiple slide systematic variation. Nucleic Acids Research 30 (4), e15:1- e15:11.
- Yücel, E., Karaesmen, F., Salman, F.S., Türkay, M., 2009. Optimizing product assortment under customer-driven demand substitution. European Journal of Operational Research 199 (3), 759-768.