Knowledge and Information Systems

, Volume 29, Issue 1, pp 223–236

Product selection for promotion planning

Authors

    • Graduate School of ManagementUniversity of California
  • Chunhui Hao
    • Chinese Academy of Sciences
Open AccessShort Paper

DOI: 10.1007/s10115-010-0326-8

Cite this article as:
Yang, Y. & Hao, C. Knowl Inf Syst (2011) 29: 223. doi:10.1007/s10115-010-0326-8

Abstract

This paper addresses a very important question—how to select the right products to promote in order to maximize promotional benefit. We set up a 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. Moreover, we are able to get access to real supermarket data and apply our solution to help achieve higher profits. Our experimental results on both synthetic data and real supermarket data demonstrate that our framework and method are highly effective and can potentially bring huge profit gains to a marketing campaign.

Keywords

Data mining Marketing Promotion planning Optimization Market basket analysis

Copyright information

© The Author(s) 2010