The retail market as a complex system

Aim of this paper is to introduce the complex system perspective into retail market analysis. Currently, to understand the retail market means to search for local patterns at the micro level, involving the segmentation, separation and profiling of diverse groups of consumers. In other contexts, however, markets are modeled as complex systems. Such strategy is able to uncover emerging regularities and patterns that make markets more predictable, e.g. enabling to predict how much a country’s GDP will grow. Rather than isolate actors in homogeneous groups, this strategy requires to consider the system as a whole, as the emerging pattern can be detected only as a result of the interaction between its self-organizing parts. This assumption holds also in the retail market: each customer can be seen as an independent unit maximizing its own utility function. As a consequence, the global behavior of the retail market naturally emerges, enabling a novel description of its properties, complementary to the local pattern approach. Such task demands for a data-driven empirical framework. In this paper, we analyze a unique transaction database, recording the micro-purchases of a million customers observed for several years in the stores of a national supermarket chain. We show the emergence of the fundamental pattern of this complex system, connecting the products’ volumes of sales with the customers’ volumes of purchases. This pattern has a number of applications. We provide three of them. By enabling us to evaluate the sophistication of needs that a customer has and a product satisfies, this pattern has been applied to the task of uncovering the hierarchy of needs of the customers, providing a hint about what is the next product a customer could be interested in buying and predicting in which shop she is likely to go to buy it.

The retail market as a complex system
Pennacchioli D, Coscia M, Rinzivillo S, Giannotti F, Pedreschi D
EPJ Data Science 2014, 3 :33 (11 December 2014)

http://dx.doi.org/10.1140/epjds/s13688-014-0033-x ;

Source: www.epjdatascience.com

With this knowledge and insight into the world that’s dawning.  One world must be destroyed in order for the new world to come forth; one segment of society must give way to the new in order to facilitate and ease this transition.

The top of society is where and what determines the ease or the possibility of this transition.  That is the point that needs to be altered in order to bring about this new dawn.

Unfortunately, it is the point in society that is least willing, although most capable of change.  They’ll cling to illusions and delusions of relative power over people and unsustainable material wealth than allow for everyone, including themselves, to realize something that could truly be wonderful for our lives, our well-being, and our health as living organisms.  This is before we talk about the bottom-up resistance that will be experienced as well, especially if the transition is done badly by the people who are at the top of the given social unit.  A shame that something so relatively simple can be so completely complicated and complex to carry out.

Silly silly world.

See on Scoop.itIt Comes Undone-Think About It

Advertisements

Tags: , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: