Reutterer, Thomas, Hornik, Kurt, March, Nicolas, Gruber, Kathrin. 2017. A Data Mining Framework for Targeted Category Promotions. Journal of Business Economics (JBE) (früher: Zeitschrift für Betriebswirtschaft ZfB), 87, (3), 337-358.

RIS

@ARTICLE{Reutterer2017,
title = {A Data Mining Framework for Targeted Category Promotions},
author = {Thomas Reutterer and Kurt Hornik and Nicolas March and Kathrin Gruber},
year = {2017},
doi = {http://dx.doi.org/10.1007/s11573-016-0823-7},
url = {http://link.springer.com/article/10.1007/s11573-016-0823-7},
volume = {87},
number = {3},
language = {EN},
pages = {337-358},
journal = {Journal of Business Economics (JBE) (früher: Zeitschrift für Betriebswirtschaft ZfB)},
abstract = {This research presents a new approach to derive recommendations for segment-specific, targeted marketing campaigns on the product category level. The proposed methodological framework serves as a decision support tool for customer relationship managers or direct marketers to select attractive product categories for their target marketing efforts, such as segment-specific rewards in loyalty programs, cross-merchandising activities, targeted direct mailings, customized supplements in catalogues, or customized promotions. The proposed methodology requires customers’ multi-category purchase histories as input data and proceeds in a stepwise manner. It combines various data compression techniques and integrates an optimization approach which suggests candidate product categories for segment-specific targeted marketing such that cross-category spillover effects for non-promoted categories are maximized. To demonstrate the empirical performance of our proposed procedure, we examine the transactions from a real-world loyalty program of a major grocery retailer. A simple scenario-based analysis using promotion responsiveness reported in previous empirical studies and prior experience by domain experts suggests that targeted promotions might boost profitability between 15 % and 128 % relative to an undifferentiated standard campaign.},
}