The influence of shopping path length on sales growth and its variance

Research output: Contribution to journalArticle

Abstract

We study the influence of shopping path length on the number of items purchased. It is a well known fact in in-store shopper marketing that the longer the travel distance, the more items purchased. We analyze a shopping path data of 556 shoppers collected at a retail store in an urban are in Tokyo, Japan. We observed the fact the longer the travel distance, the greater the variance of the number of items purchased as well as its average. To explain this fact, we proposed a probability model of sequential purchase decisions using the Bernoulli process. We can estimate the number of items purchased as the binomial distribution given the shopping path. In the case study, we show how this assumption can be justified by the data from a real store.

Original languageEnglish
Pages (from-to)112-117
Number of pages6
JournalOperations and Supply Chain Management
Volume12
Issue number2
DOIs
Publication statusPublished - 2019

Keywords

  • Retail operation
  • Shopper marketing

ASJC Scopus subject areas

  • Management Information Systems
  • Statistics, Probability and Uncertainty
  • Management Science and Operations Research
  • Information Systems and Management

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