Purpose- We propose a dairy bundle, integrating strategies to jointly maximise producer revenue and consumer utility according to the latter’s preferences. Design/methodology/approach- An algorithm based on a nested logit model identifies the bundle maximising producer revenue based on factors affecting consumer purchase behaviour. The data are drawn from a mall-intercept survey administered in Iran, with consumers stating a hypothetical choice among a comprehensive set of dairy products. Findings- Demographic characteristics and marketing mix elements significantly affect consumers' preferences. An algorithm based on the estimated dissimilarity parameter determines the best bundle of dairy products, simultaneously obtaining the highest utility and the highest expected revenue. Originality/value- Consumer preference and maximum producer or retail seller income are considered simultaneously. The bundling promotion strategy is widely used for food offerings and fresh foods and can be extended to other products.

Simultaneous Consideration of Consumer Preferences and Seller Revenue as a Smart Retail Sales and Management Strategy / Ahmadi Kaliji, Sina ; Mojtaba Mojaverian, Seyed ; Amirnejad, Hamid ; Canavari, Maurizio. - In: EUROPEAN JOURNAL OF MANAGEMENT AND BUSINESS ECONOMICS. - ISSN 2444-8451. - STAMPA. - 33:(2024), pp. 1-22. [10.1108/EJMBE-04-2022-0105]

Simultaneous Consideration of Consumer Preferences and Seller Revenue as a Smart Retail Sales and Management Strategy

Ahmadi Kaliji, Sina
;
Canavari, Maurizio
2024

Abstract

Purpose- We propose a dairy bundle, integrating strategies to jointly maximise producer revenue and consumer utility according to the latter’s preferences. Design/methodology/approach- An algorithm based on a nested logit model identifies the bundle maximising producer revenue based on factors affecting consumer purchase behaviour. The data are drawn from a mall-intercept survey administered in Iran, with consumers stating a hypothetical choice among a comprehensive set of dairy products. Findings- Demographic characteristics and marketing mix elements significantly affect consumers' preferences. An algorithm based on the estimated dissimilarity parameter determines the best bundle of dairy products, simultaneously obtaining the highest utility and the highest expected revenue. Originality/value- Consumer preference and maximum producer or retail seller income are considered simultaneously. The bundling promotion strategy is widely used for food offerings and fresh foods and can be extended to other products.
2024
Simultaneous Consideration of Consumer Preferences and Seller Revenue as a Smart Retail Sales and Management Strategy / Ahmadi Kaliji, Sina ; Mojtaba Mojaverian, Seyed ; Amirnejad, Hamid ; Canavari, Maurizio. - In: EUROPEAN JOURNAL OF MANAGEMENT AND BUSINESS ECONOMICS. - ISSN 2444-8451. - STAMPA. - 33:(2024), pp. 1-22. [10.1108/EJMBE-04-2022-0105]
Ahmadi Kaliji, Sina ; Mojtaba Mojaverian, Seyed ; Amirnejad, Hamid ; Canavari, Maurizio
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/944696
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