A Review on Price Optimization Techniques for Omni-channel retailing

Abstract

Easy access to the internet has made the multiple options available to the purchasers which successively motivates the retailers to use omni-channel features in their businesses. But to survive in these highly competitive markets retailers need to keep observing the market and regularly reprice their products consistent with the competitor’s strategies. Working out an optimal price in terms of price or revenue earned with the assistance of an automated learning base approach may be challenging. This paper presents an in-depth review of various techniques used for price optimization in the retail segment. The main idea behind studying these methods is to know the strengths and weaknesses of every method and also to understand which method is more suitable under which conditions. This information is beneficial to assist ongoing research in having a summary of the varied approaches used for pricing optimization and also to know the gap between the past researches to understand the long scope of research. The study shows that out of so techniques used for retail price optimization, the machine learning approach seems to be the brighter technique