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May 27, 2026Management Science0 citations

Optimizing Product Placement to Maximize Revenue Through Customer Behavior Modeling

When Location Shapes Choice: Placement Optimization of Substitutable Products

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Authors

OHOmar El HousniRURajan Udwani

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Overview

Randomized trial seeks to optimize product placement to enhance revenue, highlighting strategic choice impacts.

Key Points

  • The research aims to optimize the placement of substitutable products in displays to maximize seller revenue by understanding customer purchase behavior.
  • Developed a general algorithm to optimize product placement according to various browsing distributions and choice models.
  • Introduced a randomized algorithm for cardinality-constrained assortment optimization.
  • Provided deterministic approximation algorithms for specific cases, such as the Markov choice model and identical product prices.
  • Achieved an expected solution value at least a 𝛼 factor of the optimal for placement.
  • Demonstrated tighter guarantees in specific scenarios, such as with identical prices.
  • Utilized algorithms that improve placement effectiveness based on customer browsing patterns.

Cite This Study

Housni et al. (2026) studied this question.

synapsesocial.com/papers/6a168ac80c924ddd1bd597fahttps://doi.org/10.1287/mnsc.2023.03826
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