Product Line Selection Model Essay
On the product line selection problem under attraction choice models of consumer behavior
(Schön, C. , 2010)
This paper shows an exact approach for maximizing profit-oriented product line design (PLD) with continuous price. This exact approach separated by consumer behaviors into two models, which consumer choices are aggregated or broken apart into each customer segment (different price). The consumer behavior in this approach is predicted by famous attraction models.
1. This approach considers customized price setting, which is beneficial for firm’s strategies
2. This approach takes the difference of consumer behavior into account using segmentation.
3. The model can apply to various PLD …show more content…
The model also leaves some other crucial factors like consumer behavior, retails’ competitors.
On the Optimal Product Line Selection Problem with Price Discrimination. (Schön, C. , 2010)
The article extends the fractional programming properties of a stylized model for the product line and price provided by Chen and Hausman (2000) by utilizing mathematical properties of the optimal product line selection problem using choice-based conjoint analysis to evaluate the profitability of design. 1. This model allows for various customer choice behavior and can flexibly cope with different attraction choice models and approximately the first-choice model.
2. This model is useful for finding optimal solutions to real-world instances in a reasonable amount of time
3. Personalizing prices and customizing the menu offered can lead to significant profit improvements.
1. The method could not solve the case where customers are assumed to be homogeneous and fixed costs are neglected.
Redesigning product lines in a period of economic crisis: a hybrid simulated annealing algorithm with crossover
(Tsafarakis, S. , …show more content…
Hybrid metaheuristic can be used for redesigning a firm’s product line to adapt their offer to customer buying behavior and reduced levels of consumer purchasing power. 1. NP-hard optimization, which has real-world applications with very large numbers of attributes and level, need to get a good solution within a reasonable computation time.
Product selection for promotion planning (Yang, Y., & Hao, C., 2011)
This paper shows a method to select products for promotion in order to maximize promotional benefit. The report indicates framework to incorporate promotion decisions into the data-mining process, formulate the profit maximization problem as an optimization problem, and propose a heuristic search solution to discover the right products to promote.
1. This method is highly effective and applicable for the real supermarket data to help them achieve higher profits to a marketing campaign 1. This method only is considered the short-term associations between products by looking at associations at the transaction level.
A dynamic marketing-operations interface model of new product updates
(Sale, R. S., Mesak, H. I., & Inman, R. A.,