Quantifying knowledge on consumers' payment behaviour in retailing

This paper shows how information about payments contained in normal market based data can be used by retailers. A possible strukture of hypotheses explaining consumers' payment behavior is described and a sample hypothesis is created and tested with actual market basket data. Knowledge of this kind can be used by retailers to better predict the amounts of cash needed to make change which in turn could help to minimze the costs of cash management. Results of payment analysis can also be used to develop and manage new features of promotions. Examples are given for both kinds of possible uses....