Abstract
As competition intensifies, retail companies and stores must plan and execute more effective marketing strategies. As in manufacturing and other industries, retailers are introducing information and communication technologies (ICT) to manage customer relationships through frequent shopper programs and point-of-sale systems. Data shows customers’ purchases and the effectiveness of their marketing initiatives. Even though ICT data confirm retailers’ current situations, however, they are of little use in setting effective marketing strategies. This study examines a Japanese supermarket chain and ID-POS data, and constructs a better category assortment at each store. We analyze purchase probabilities by merchandise category and customer and estimate category purchase intention of each store. We compare and discuss our results and actual sales.
