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Published in:
2005 | OriginalPaper | Chapter
Heuristic Bundling
Authors : Bernd Stauß, Volker Schlecht
Published in: Data Analysis and Decision Support
Publisher: Springer Berlin Heidelberg
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Bundling can be used to tailor offers to the demand of consumers and helps to tackle the management of variety reduction. It is strongly based on consumer preferences which necessitates the use of elaborated data analysis techniques as, e.g., conjoint analysis.
In the following, we review a heuristic approach that goes back to a recent paper from Stauß and Gaul (2004a) and strikes for finding the most profitable bundles and respective prices. Since the algorithm starts out from an initial set of bundles, this paper focuses on the determination of such a promising initial bundle set.