Promotional Pricing in Omnichannel Environment on Perfume and Cosmetics Retailer Data

The development of technology is changing the pricing process in many ways, especially in relation to promotions. This transformation creates new business opportunities by providing access to an omni-channel environment. However, this environment also poses a number of challenges that companies need to address. In this paper, we investigated promotional pricing in an omnichannel environment using the example of data from a perfume and cosmetics retailer that we collaborated with. The research aims to offer the company a variant of structuring promotional pricing, which will include a model for analyzing pricing policy factors and recommendations on discounts for products by segments, product groups, brands, and sales channels. Moreover, it is necessary to answer the question about the need to develop an omnichannel environment: should businesses actively develop this concept? To achieve these goals, we performed regression modeling and selected recommendations using the differential evolution method based on regression results. One of the key conclusions: the difference between an offline channel and an online channel is significant. The main reason for this is more free access to information and the possibility of obtaining it in the online channel. Thus, recommendations for the retailer were compiled and issued only for the offline channel, since the quality of recommendations for online use was not high enough.