Maximizing profit of a food retailing chain by targeting and promoting valuable customers using Loyalty Card and Scanner Data

摘要: Abstract In this paper, we set up a House of Profit Model, an approach maximizing profit food retailing chain by targeting and promoting valuable customers. Our model combines • segmentation analysis households using Loyalty Card Scanner Data, price promotion elasticity analysis, simulation effects pricing promotion, optimization to maximize profit. These components are well-known in the literature each them has received considerable independent study. However, study combine these into one consistent, application-orientated model. We then demonstrate panel data that combination synergic effect on efficiency estimation maximization (e.g., is improved conducting it within market segments rather than across entire hetereogeneous population). estimates further incorporating “pass through”—a functional relationship between retailer’s unit prices costs.