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Optimising allocation of marketing resources among offline channel retailers: A bi-clustering-based model

Jin Xiao, Yuxi Li, Yuhang Tian, Xiaoyi Jiang, Yuan Wang and Shouyang Wang

Journal of Business Research, 2025, vol. 186, issue C

Abstract: Existing research on optimising marketing resource allocation focuses mainly on the customer rather than the retailer level. However, retailers play an important role in marketing channels, and optimising retailer-level marketing resource allocation poses important decision-making challenges. In this study, we proposed a retailer-level offline marketing resource-optimising allocation model based on retailer segmentation. The model consists of two stages. In the first stage, we built a retailer segmentation index system and introduced a bi-clustering algorithm to segment retailers that can cluster samples and features simultaneously. In the second stage, we proposed a new measurement for the rate of return on the utility of marketing resources and then leveraged the mean–variance model to find optimal marketing resource allocation plans. An empirical study of a famous Chinese alcoholic beverage company demonstrated that the proposed model outperformed four baseline models.

Keywords: Operational research in marketing; Allocation of marketing resources; Retailer level; Market segmentation; Bi-clustering (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:186:y:2025:i:c:s0148296324004181

DOI: 10.1016/j.jbusres.2024.114914

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