TY - GEN
T1 - When Advertising Meets Assortment Planning
T2 - 16th Annual International Conference on Combinatorial Optimization and Applications, COCOA 2023
AU - Wang, Chenhao
AU - Wang, Yao
AU - Tang, Shaojie
N1 - Publisher Copyright:
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.
PY - 2024
Y1 - 2024
N2 - While the topic of assortment optimization has received a significant amount of attention, the relationship between advertising and its impact on this issue has not been well-explored. This paper aims to fill the gap in research by addressing the joint advertising and assortment optimization problem. We propose that advertising can influence product selection by increasing preference for certain products, and the extent of this effect is determined by the product-specific effectiveness of advertising and the resources allocated to advertising for that product. Our goal is to find an optimal solution, which comprises of a combination of advertising strategy and product assortment, that maximizes revenue, taking into account budget constraints on advertising. In this paper, we examine the characteristics of this problem and present efficient methods to solve it under various scenarios. Both the unconstraint and cardinality constraint settings are studied and the joint assortment, pricing, and advertising problem is also examined. We further extend our findings to account for consumer decision-making patterns.
AB - While the topic of assortment optimization has received a significant amount of attention, the relationship between advertising and its impact on this issue has not been well-explored. This paper aims to fill the gap in research by addressing the joint advertising and assortment optimization problem. We propose that advertising can influence product selection by increasing preference for certain products, and the extent of this effect is determined by the product-specific effectiveness of advertising and the resources allocated to advertising for that product. Our goal is to find an optimal solution, which comprises of a combination of advertising strategy and product assortment, that maximizes revenue, taking into account budget constraints on advertising. In this paper, we examine the characteristics of this problem and present efficient methods to solve it under various scenarios. Both the unconstraint and cardinality constraint settings are studied and the joint assortment, pricing, and advertising problem is also examined. We further extend our findings to account for consumer decision-making patterns.
KW - advertising effect
KW - assortment optimization
KW - budget allocation
UR - https://www.scopus.com/pages/publications/85180632950
U2 - 10.1007/978-3-031-49614-1_2
DO - 10.1007/978-3-031-49614-1_2
M3 - Conference contribution
AN - SCOPUS:85180632950
SN - 9783031496134
T3 - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
SP - 16
EP - 42
BT - Combinatorial Optimization and Applications - 16th International Conference, COCOA 2023, Proceedings
A2 - Wu, Weili
A2 - Guo, Jianxiong
PB - Springer Science and Business Media Deutschland GmbH
Y2 - 15 December 2023 through 17 December 2023
ER -