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Mixture Models With Grouping Structure: Retail Analytics Applications, Haidar Almohri

Wayne State University Dissertations

Growing competitiveness and increasing availability of data is generating tremendous interest in data-driven analytics across industries. In the retail sector, stores need targeted guidance to improve both the efficiency and effectiveness of individual stores based on their specific location, demographics, and environment. We propose an effective data-driven framework for internal benchmarking that can lead to targeted guidance for individual stores. In particular, we propose an objective method for segmenting stores using a model-based clustering technique that accounts for similarity in store performance dynamics. It relies on effective Finite Mixture of Regression (FMR) techniques for carrying out the model-based clustering with …