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1658. Decision support for product diffusion in retail - The impact of geospatial and temporal access.
Invited abstract in session TB-50: Retail Operations and Marketing, stream Retail Operations.
Tuesday, 10:30-12:00Room: M2 (building: 101)
Authors (first author is the speaker)
| 1. | Florian Cramer
|
| Chair of Food Supply Chain Management, University of Bayreuth | |
| 2. | Christian Fikar
|
| Chair of Food Supply Chain Management, University of Bayreuth |
Abstract
Despite the increasing recognition of local actors as pivotal agents for sustainability in food chains, numerous innovative products, particularly from startups, encounter difficulties in reaching consumers. Offering such products can facilitate consumer interest and position retailers as enablers of sustainable food systems. However, listing a new product can not only bring competitive advantages but also lead to risks, e.g., due to potential losses if the product is rejected. Retailers often have to rely on intuition and estimate a product's potential due to unknown rejection probabilities. This research delves into the early stages of product diffusion by examining the effectiveness of traditional stationary brick-and-mortar stores in contrast to the agility of mobile pop-up stores. Utilizing an agent-based simulation (ABS) model, we replicate the product diffusion process and employ a regression model to determine promising store locations. Through our investigation, we unveil how combining ABS and machine learning procedures can provide decision support for both retailers and MSMEs. For a limited number of stores, introducing a single mobile store can considerably expedite product diffusion. Generally, using mobile stores can enable a more pronounced market penetration, whereas stationary stores yield higher sales due to recurrent purchases. Furthermore, our findings show how the probability of rejection influences the shape of the product diffusion curve.
Keywords
- Agent Systems
- Decision Support Systems
- Simulation
Status: accepted
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