Assortment optimization under the multi-choice rank list model : practical application at CurveCatch
Autor(a) principal: | |
---|---|
Data de Publicação: | 2022 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/41432 |
Resumo: | In today’s highly competitive market, retailers are under significant pressure to determine which products will most effectively satisfy the needs and preferences of their customers to maximize profits given strategical and operational limitations. Most of the assortment planning approaches proposed to help businesses understand customer behaviour are based on discrete choice models. However, many choice models assume that a customer can only purchase at most one product, which in some cases is not an accurate reflection of the real-world purchasing behaviour. In this paper I quantify the benefit of accounting for multi-choice behaviour in rank based choice models and measure the impact that business requirements have on the optimal assortment. Based on the numerical experiment using secondary data provided by CurveCatch, an e-commerce lingerie retailer, I demonstrate that multi-choice modelling significantly improves the revenue generated by the assortment. Furthermore, I provide insight into the implementation of strategic and operational constraints and their impact on the optimal assortment. |
id |
RCAP_88517afdaf48301e5909750086f9e0b0 |
---|---|
oai_identifier_str |
oai:repositorio.ucp.pt:10400.14/41432 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Assortment optimization under the multi-choice rank list model : practical application at CurveCatchAssortment optimizationAssortment planningMulti-choice behaviorNon-parametric choiceChoice modelsProduct assortmentDemand substitutionConsumer choicePreference listDomínio/Área Científica::Ciências Sociais::Economia e GestãoIn today’s highly competitive market, retailers are under significant pressure to determine which products will most effectively satisfy the needs and preferences of their customers to maximize profits given strategical and operational limitations. Most of the assortment planning approaches proposed to help businesses understand customer behaviour are based on discrete choice models. However, many choice models assume that a customer can only purchase at most one product, which in some cases is not an accurate reflection of the real-world purchasing behaviour. In this paper I quantify the benefit of accounting for multi-choice behaviour in rank based choice models and measure the impact that business requirements have on the optimal assortment. Based on the numerical experiment using secondary data provided by CurveCatch, an e-commerce lingerie retailer, I demonstrate that multi-choice modelling significantly improves the revenue generated by the assortment. Furthermore, I provide insight into the implementation of strategic and operational constraints and their impact on the optimal assortment.Num mundo atual extremamente competitivo, os retalhistas estão sob uma pressão significativa para selecionar os produtos que vão satisfazer as necessidades e as preferências dos seus consumidores da forma mais eficaz de forma a maximizar os lucros dadas as limitações estratégicas e operacionais do seu negócio. Grande parte das abordagens propostas para ajudar as empresas a compreender o comportamento dos seus clientes baseia-se em modelos de escolha discreta. No entanto, a maior parte dos modelos de escolha parte do pressuposto que cada cliente pode apenas comprar no máximo um produto, o que em alguns casos não reflete de forma realística os comportamentos dos consumidores no mundo real. Nesta tese, eu quantifico o benefício associado em permitir que um cliente compre mais que um produto em modelos de escolha baseados em rankings e para além disso, meço o impacto que as limitações de negócio têm sobre a receita associada à gama de produtos ótima. Através da simulação numérica com base em dados fornecidos pela CurveCatch, uma empresa retalhista de roupa interior focada no comércio eletrónico, eu demonstro que permitir que um cliente compre mais que um produto melhora significativamente a receita gerada pela gama de produtos. Paralelamente, demonstro o impacto que a imposição dos requisitos estratégicos e operacionais pode ter na gama de produtos ótima.Gijsbrechts, JorenVeritati - Repositório Institucional da Universidade Católica PortuguesaOliveira, Guilherme da Silva2023-06-26T09:29:10Z2023-02-022022-12-312023-02-02T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/41432TID:203279360enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:47:00Zoai:repositorio.ucp.pt:10400.14/41432Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:34:07.523982Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Assortment optimization under the multi-choice rank list model : practical application at CurveCatch |
title |
Assortment optimization under the multi-choice rank list model : practical application at CurveCatch |
spellingShingle |
Assortment optimization under the multi-choice rank list model : practical application at CurveCatch Oliveira, Guilherme da Silva Assortment optimization Assortment planning Multi-choice behavior Non-parametric choice Choice models Product assortment Demand substitution Consumer choice Preference list Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Assortment optimization under the multi-choice rank list model : practical application at CurveCatch |
title_full |
Assortment optimization under the multi-choice rank list model : practical application at CurveCatch |
title_fullStr |
Assortment optimization under the multi-choice rank list model : practical application at CurveCatch |
title_full_unstemmed |
Assortment optimization under the multi-choice rank list model : practical application at CurveCatch |
title_sort |
Assortment optimization under the multi-choice rank list model : practical application at CurveCatch |
author |
Oliveira, Guilherme da Silva |
author_facet |
Oliveira, Guilherme da Silva |
author_role |
author |
dc.contributor.none.fl_str_mv |
Gijsbrechts, Joren Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Oliveira, Guilherme da Silva |
dc.subject.por.fl_str_mv |
Assortment optimization Assortment planning Multi-choice behavior Non-parametric choice Choice models Product assortment Demand substitution Consumer choice Preference list Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Assortment optimization Assortment planning Multi-choice behavior Non-parametric choice Choice models Product assortment Demand substitution Consumer choice Preference list Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
In today’s highly competitive market, retailers are under significant pressure to determine which products will most effectively satisfy the needs and preferences of their customers to maximize profits given strategical and operational limitations. Most of the assortment planning approaches proposed to help businesses understand customer behaviour are based on discrete choice models. However, many choice models assume that a customer can only purchase at most one product, which in some cases is not an accurate reflection of the real-world purchasing behaviour. In this paper I quantify the benefit of accounting for multi-choice behaviour in rank based choice models and measure the impact that business requirements have on the optimal assortment. Based on the numerical experiment using secondary data provided by CurveCatch, an e-commerce lingerie retailer, I demonstrate that multi-choice modelling significantly improves the revenue generated by the assortment. Furthermore, I provide insight into the implementation of strategic and operational constraints and their impact on the optimal assortment. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-12-31 2023-06-26T09:29:10Z 2023-02-02 2023-02-02T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/41432 TID:203279360 |
url |
http://hdl.handle.net/10400.14/41432 |
identifier_str_mv |
TID:203279360 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799132067610492928 |