Monetary discount strategies for real-time promotion campaign

Ying Chun Lin, Chi Hsuan Huang, Chu Cheng Hsieh, Yu Chen Shu, Kun Ta Chuang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

Abstract

The eectiveness of monetary promotions has been well reported in the literature to aect shopping decisions for products in real life experience [3]. Nowadays, e-commerce retailers are facing more fierce competition on price promotion in that consumers can easily use a search engine to find another merchant selling an identical product for comparing price. We study e-commerce data — shopping receipts collected from email accounts, and conclude that for non-urgent products like books or electronics, buyers are price sensitive and are willing to delay the purchase for better deals. We then present a real-time promotion framework, called the RTP system: a one-time promoted discount price is oered to allure a potential buyer making a decision promptly. To achieve more eectiveness on real-time promotion in pursuit of better profits, we propose two discount-giving strategies: an algorithm based on Kernel density estimation, and the other algorithm based on Thompson sampling strategy. We show that, given a pre-determined discount budget, our algorithms can significantly acquire better revenue in return than classical strategies with simply fixed discount on label price. We then demonstrate its feasibility to be a promising deployment in e-commerce services for real-time promotion.

Original languageEnglish
Title of host publication26th International World Wide Web Conference, WWW 2017
PublisherInternational World Wide Web Conferences Steering Committee
Pages1123-1132
Number of pages10
ISBN (Print)9781450349130
DOIs
Publication statusPublished - 2017 Jan 1
Event26th International World Wide Web Conference, WWW 2017 - Perth, Australia
Duration: 2017 Apr 32017 Apr 7

Publication series

Name26th International World Wide Web Conference, WWW 2017

Other

Other26th International World Wide Web Conference, WWW 2017
CountryAustralia
CityPerth
Period17-04-0317-04-07

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All Science Journal Classification (ASJC) codes

  • Software
  • Computer Networks and Communications

Cite this

Lin, Y. C., Huang, C. H., Hsieh, C. C., Shu, Y. C., & Chuang, K. T. (2017). Monetary discount strategies for real-time promotion campaign. In 26th International World Wide Web Conference, WWW 2017 (pp. 1123-1132). [3052616] (26th International World Wide Web Conference, WWW 2017). International World Wide Web Conferences Steering Committee. https://doi.org/10.1145/3038912.3052616