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.
BibTeX
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.
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Status of publication | Published |
---|---|
Affiliation | WU |
Type of publication | Journal article |
Journal | Journal of Business Economics (JBE) (früher: Zeitschrift für Betriebswirtschaft ZfB) |
WU Journalrating 2009 | A |
WU-Journal-Rating new | FIN-A, INF-A, STRAT-B, WH-B |
Language | English |
Title | A Data Mining Framework for Targeted Category Promotions |
Volume | 87 |
Number | 3 |
Year | 2017 |
Page from | 337 |
Page to | 358 |
Reviewed? | Y |
URL | http://link.springer.com/article/10.1007/s11573-016-0823-7 |
DOI | http://dx.doi.org/10.1007/s11573-016-0823-7 |
Open Access | Y |
Open Access Link | https://link.springer.com/article/10.1007%2Fs11573-016-0823-7 |
Associations
- People
- Reutterer, Thomas (Details)
- Hornik, Kurt (Details)
- Gruber, Kathrin (Former researcher)
- External
- March, Nicolas (Rewe Digital, Germany)
- Organization
- Institute for Marketing and Customer Analytics IN (Details)
- Research Institute for Computational Methods FI (Details)
- Research areas (ÖSTAT Classification 'Statistik Austria')
- 5301 Distributive trades (Details)
- 5307 Business and management economics (Details)
- 5315 Commercial science (Details)
- 5320 Marketing (Details)
- 5321 Market research (Details)