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The Research On Product Assortment Planning Of Online Retailers Based Online Reviews

Posted on:2015-01-09Degree:MasterType:Thesis
Country:ChinaCandidate:Y LiFull Text:PDF
GTID:2309330434452576Subject:Logistics management
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Assortment planning is a major operational issue that arises in many industries, such as retailing, airlines, and consumer electronics. Product assortment planning,namely, merchants choose a set of product from large numbers of products to sell. The goal of assortment planning is to specify an assortment that maximizes sales or gross margin subject to various constraints, such as a limited budget for purchase of products, limited shelf space for displaying products etc. Retailers hope to provide the right goods to meet the needs of the consumers at the right time and right place. First of all, it is not easy to do this, then, did it also does not ensure that must be correct. Retailers should analyze the specific issues to adjust product strategy to adapt to the factors such as the change of season, the introduction of new products and the change of consumer preferences etc, in all of which, there is no doubt that the influence of the economic environment is profound.With the constant development of the Internet today, more and more enterprises realize the importance of network information transmission. Certainly the e-business enterprises are no exception,dealing with network closely. As an emerging industry booming in recent years, the e-business enterprise has gradually shown its superiority and vitality. Online retailers must always be wary of the negative effect of the network information.Only by focusing on online consumer behavior, and mastering their nets review information factors, can online retailers find direction for their own development.Compared with the traditional shopping mode, online consumers’ purchase decisions are more likely affected by the influence of network information. Facing more comprehensive information network evaluation of the goods, online shopping consumers become more rational about all kinds of network evaluation information. Online reviews mainly includes several dimensions, The dimensions most frequently mentioned are verbal, valence, variance, volume and helpfulness of reviews. However, we find that in the study of Online reviews, scholars have not reached a consensus between online reviews and stores sales, it also makes the research has a broad development space. This article selects the dimensions of valence, variance as the influence factors of product selection problem.As we know, Enterprise’s resources are limited, they always want to be able to correctly allocate resources, to maximize revenue. Different products have different characteristics, how to make good use of the combination of the choice between these products, for many online retail enterprise, is a difficult thing. Consumer’s Choices of products is a Discrete process, so the Discrete Choice Model is widely used. We select the most basic and most widely used Multinomial Logit Model to simulate the customer selection process. For a long time, the problems in retailers such as product assortment planning problem have an exponential growth with the product numbers, which are called NP Hard problems. Generally, it is difficult to accurately find out the optimal solution, thus to seek an effective approximate algorithm is very necessary. The genetic algorithm is proved a heuristic algorithm applied extensively, an algorithm for solving optimization problem. This paper uses improved genetic algorithm based on greedy strategy, which overcome some weakness of simple genetic algorithm, to achieve the optimal solution more rapidly.Tracing researches of related products selection problem, we find no scholar combine online reviews information to PAP. Therefore, in the network economy era, the author thinks that combining these two factors is meaningful. In this paper, by using the improved MNL model, PAP problem was converted to biological genetic algorithm language through MATLAB programming. We analyze the results under the different parameter settings, and draw the following conclusions:1. The valence and the product group choice have a positive influence. The more concern about online product reviews customers have, the more willing they want to choose the relevant products. Also there will be more customers using several kinds of high grade products, although this leads to less product choices, but there will be a greater profit.2. The variance and the choice of product group show a negative relationship,that is to say, with the increase of variance sensitivity coefficient, the merchant’s profit are reduced, but the product quantity are increased. 3. The change of population size affects the result of genetic algorithm. In the process of its larger, the genetic generation become less, but the iteration speed is slow, and convergence is slow, to find the optimal solution in less time.Under the background of the era of network, we construct merchants product selection model based online reviews influence, find the effect of online comments on online retailer product decisions, enrich the research scope of PAP problem, all of which have certain innovation. But because of the restriction of time and ability, the thesis cannot fully analyze the impact of online reviews on business decisions, only starting from the points of local with certain one-sidedness. Even though this research on PAP problems of the e-business enterprises based online reviews is not enough in-depth, but, after all, is a beneficial attempt for further in-depth research.Besides we hope to provide a effective reference, also a certain theoretical value and practical significance.
Keywords/Search Tags:Product assortment planning, Online reviews, Multinomial LogitModel, Genetic algorithm
PDF Full Text Request
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