Smart Customers and Retail Promotions

Because of new players and higher prices the German retail market is becoming increasingly competitive. In this environment it is crucial for retailers to tailor their promotional activities to the needs of their respective markets and to forecast demand as precisely as possible. Julia Freiheit develops a model, which allows a highly accurate forecast of demand, taking into account “smart” customer behavior and promotional activities. In addition to the theoretical aspects she describes the practical implications to retailing and the coordination within the supply chain.