Retail revenue management
This work surveys decision support systems that use sales and shopping basket data to suggestregular and promotional price changes in order to improve profit and turnover in retailing (socalledretail revenue management [RRM] systems). Starting with a demonstration of the impactof pricing on profit, we critically assess the pricing methods currently used in retailing and fromthis basis show the potential for improvement using retail revenue management systems. Furthermore,we classify the different types of pricing problems and describe the methods that areused in retail revenue management. Finally, we discuss the pricing process of retail revenuemanagement systems and report the benefits of such systems typically observed in practice.