Customer Loyalty Based Dynamic Pricing by Using RFID-Enabled Floor Level Sales Information

Physical store retailers are facing tougher situation than ever, and some of the effective strategies to tackle this situation are to achieve a high inventory turnover rate to make most use of their store space and to keep a good relationship with their loyal customers. This study proposes a mechanism to make it possible to reward loyal customers as a result of adjusting an inventory turnover rate by assuming RFID information captured on the store floor. The proposal consists of an application and algorithms used in the application. The application is implemented as a proof of concept and validity of the algorithms are shown by numerical study