METHOD AND SYSTEM FOR ESTIMATION OF OPTIMAL MARKDOWN PRICING BASED ON CUSTOMER REGRET

This disclosure relates generally to estimation of optimal markdown pricing based on customer regret. Pricing is a core aspect of any retail industry, and one of the pricing strategies used by retailers to attract customers is price reduction, wherein a seasonal product is sold at a markdown price a...

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Hauptverfasser:	SARKAR, SIDDHARTHA, SHAW, AVISHEK KUMAR, PANAPARAMBIL UNNIKRISHNAN, KRISHNANUGRAH, KUMAR, SUMAN, BALARAMAN, VIVEK
Format:	Patent
Sprache:	eng
Schlagworte:	CALCULATING COMPUTING COUNTING DATA PROCESSING SYSTEMS OR METHODS, SPECIALLY ADAPTED FORADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORYOR FORECASTING PURPOSES PHYSICS SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE,COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORY OR FORECASTINGPURPOSES, NOT OTHERWISE PROVIDED FOR
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Beschreibung
Zusammenfassung:	This disclosure relates generally to estimation of optimal markdown pricing based on customer regret. Pricing is a core aspect of any retail industry, and one of the pricing strategies used by retailers to attract customers is price reduction, wherein a seasonal product is sold at a markdown price after a predictable regular sale. The existing techniques for estimating an optimal markdown price are limited to factors such as market competition, and retailer formats and do not gain deeper understanding of customers' reactions nor explicitly utilizes inventory data. The disclosure estimates optimal markdown pricing in several steps including estimation of a set of behavioral model parameters comprising a customer regret parameter and a set of reservation price parameters, determining a markdown demand, and estimating the optimal markdown price using the markdown demand and inventory data.