Clusterwise pricing in stores of a retail chain

被引:0
|
作者
Harald Hruschka
机构
[1] University of Regensburg,
来源
OR Spectrum | 2007年 / 29卷
关键词
Pricing; Retailing; Optimization;
D O I
暂无
中图分类号
学科分类号
摘要
Clusterwise pricing is characterized by prices of each brand of a category being equal in stores belonging to the same cluster. Expected sales necessary to compute profits are estimated using coefficients of a multilayer perceptron which performs better than several parametric models. Store-specific coefficients of sales response models are estimated by a MCMC method. Both assignment of stores to clusters and prices of each cluster are determined by means of improving hit-and-run, a stochastic optimization method. The objective function to be optimized includes both profits and adherence to the usual price level at individual stores. Based on empirical data on sales, prices and marginal costs of a retail chain it is demonstrated that for a moderate level of risk aversion clusterwise pricing leads to higher expected utility than micromarketing pricing with different prices of each brand across individual stores. Clusterwise pricing attains a high percentage of the profits generated by micromarketing pricing and entails lower menu costs than micromarketing pricing.
引用
收藏
页码:579 / 595
页数:16
相关论文
共 50 条
  • [1] Clusterwise pricing in stores of a retail chain
    Hruschka, Harald
    OR SPECTRUM, 2007, 29 (04) : 579 - 595
  • [2] PROFIT MAXIMIZATION IN CHAIN RETAIL STORES
    PFOUTS, RW
    JOURNAL OF INDUSTRIAL ECONOMICS, 1978, 27 (01): : 69 - 83
  • [3] Control of the Retail Units of Chain Stores
    Learned, Edward P.
    ACCOUNTING REVIEW, 1935, 10 (04): : 424 - 425
  • [4] Efficiency Analysis of Retail Chain Stores in Korea
    Ko, Kyungwan
    Chang, Meehyang
    Bae, Eun-Song
    Kim, Daecheol
    SUSTAINABILITY, 2017, 9 (09)
  • [5] Effects of communities, neighborhoods and stores on retail pricing and promotion of beer
    Harwood, EM
    Erickson, DJ
    Fabian, LEA
    Jones-Webb, R
    Slater, S
    Chaloupka, FJ
    JOURNAL OF STUDIES ON ALCOHOL, 2003, 64 (05): : 720 - 726
  • [6] ANALYSIS OF CUSTOMER SATISFACTION IN THE RETAIL CHAIN STORES WITH FURNITURE
    Dvoracek, J.
    Dovcikova, A.
    Parobek, J.
    MORE WOOD, BETTER MANAGEMENT, INCREASING EFFECTIVENESS: STARTING POINTS AND PERSPECTIVE, 2017, : 101 - 105
  • [7] EFFECTS OF PRICING PRACTICES ON SALES OF SHELL EGGS IN RETAIL FOOD STORES
    SPEARMAN, JT
    NOLES, RK
    POULTRY SCIENCE, 1969, 48 (05) : 1877 - &
  • [8] Investigating category pricing behavior at a retail chain
    Chintagunta, PK
    JOURNAL OF MARKETING RESEARCH, 2002, 39 (02) : 141 - 154
  • [9] Auschwitz as a Brand: Novels about the Holocaust in Retail Chain Stores
    Tomczok, Marta
    Leociak, Jacek
    TEKSTY DRUGIE, 2023, (05): : 20 - 38
  • [10] RETAIL CHAIN STORES LINK UP WITH HOME OFFICE CONTROLS
    IVEY, RS
    DATA MANAGEMENT, 1982, 20 (03): : 40 - 41