We propose a Hidden Markov Model (HMM) approach to identifying on-shelf out-of-stock (OOS) by detecting changes in sales patterns due to unobserved states of the shelf. We calibrate our model using point-of-sales (POS) data from a big-box retailer. We validate our approach using visual...

While many studies have investigated consumer purchase behavior in reward programs, a better understanding of customer redemption behavior is lacking, particularly when promotions affect a core aspect of reward programs—free rewards. In this paper, we examine the impact of a promotion on...

Companies in diverse industries have to decide the pricing policy of their inventory over time. This decision becomes particularly complex when customers accommodate their purchase decision in the hope of future discounts and promotions. With such uncertainty, many of these customers may end up...

Similar to in-store displays in brick-and-mortar stores, house ads promote a set of specific products for customers who have reached the website. In contrast to general display advertising whose primary goal is to bring traffic to the website, these self-promotional ads are aimed to highlight...