student
The article examines how price and product range personalization affects the contribution margin of a retail chain. Three policies are compared based on controlled launches in 6 cities and 9 categories: mass promotions, personal recommendations at uniform prices, and recommendations with personal prices and "handrails". Personal recommendations increased the margin by 0.6-1.1 percentage points; adding personal prices — up to 1.4-2.1 percentage points with an unchanged discount budget and a decrease in the share of discounted orders by 12-18%. Taking into account the cost of slots and balances yielded an additional 0.4-0.6 percentage points; write-offs of perishable goods decreased by 8-12%, returns — by 0.3-0.6 percentage points. The effect is stable with a "fairness corridor" of ±5-7% and a limit on the frequency of personal offers. Conclusion: the economic result is achieved when algorithms are linked to operational constraints and are estimated by incremental profit.
price personalization, recommendation systems, contribution margin, demand management, substitution rules, price fairness, delivery slots, perishable goods, customer lifetime value, omnichannel retail
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