A Market Segmentation Aware Retail Itemset Placement Framework

It is a well-established fact in the retail industry that the placement of products on the shelves of the retail store has a significant impact on the revenue of the retailer. Given that customers tend to purchase sets of items together (i.e., itemsets) instead of individual items, it becomes a necessity to strategically place itemsets on the shelves of the retail store for improving retailer revenue. Furthermore, in practice, customers belong to different market segments based on factors such as purchasing power, demographics and customer behaviour. Existing research efforts do not address the issue of market segmentation w.r.t. itemset placement in retail stores. Consequently, they fail to efficiently index, retrieve and place high-utility itemsets in the retail slots in a market segmentation aware manner. In this work, we introduce the problem of market segmentation aware itemset placement for retail stores. Moreover, we propose a market segmentation aware retail itemset placement framework, which takes high-utility itemsets as input. Our performance evaluation with two real datasets demonstrates that our proposed framework is indeed effective in improving retailer revenue w.r.t. existing schemes.