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Managing Retail Budget Allocation between Store Labor and Marketing Activities

机译：管理商店劳动力和营销活动之间的零售预算分配

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The performance of a retail store depends on its ability to attract customer traffic, match labor with incoming traffic, and convert the incoming traffic into sales. Retailers make significant investments in marketing activities (such as advertising) to bring customers into their stores and in-store labor to convert that traffic into sales. Thus, a common trade-off that retail store managers face concerns the allocation of a store's limited budget between advertising and labor to enhance store-level sales. To explore that trade-off, we develop a centralized model to allocate limited store budget between store labor and advertising with the objective of maximizing store sales. We find that a store's inherent potential to drive traffic plays an important role, among other factors, in the relative allocation between advertising and store labor. We also find that as advertising instruments become more effective in bringing traffic to stores, managers should not always capitalize this effectiveness by increasing their existing allocations to advertising. In addition, we discuss a decentralized setting where budgetallocation decisions cannot be enforced by a store manager and present a simple mechanism that can achieve the centralized solution. In an extension, we address the budgetallocation problem in the presence of marketing efforts to shift store traffic from peak to off peak hours and show that our initial findings are robust. Further, we illustrate how the solution from the budgetallocation model can be used to facilitate store level sales force planning/scheduling decisions. Based on the results of our model, we present several insights that can help managers in budgetallocation and sales force planning.
机译：零售商店的业绩取决于其吸引客户流量，将人工与传入流量匹配以及将传入流量转换为销售的能力。零售商在营销活动（例如广告）上进行了大量投资，以将顾客带入他们的商店，并利用店内劳动力将流量转化为销售。因此，零售商店经理面临的常见折衷问题是，在广告和人工之间分配商店有限的预算以提高商店水平的销售。为了探索这种折衷方案，我们开发了一个集中模型来在商店劳动力和广告之间分配有限的商店预算，目的是最大化商店销售。我们发现，商店在吸引流量方面的内在潜力在广告和商店劳动力之间的相对分配中起着重要作用。我们还发现，随着广告手段在将流量吸引到商店方面变得更加有效，经理们不应该总是通过增加现有的广告投放来利用这种有效性。此外，我们讨论了一种分散的环境，在这种环境中，商店经理无法执行预算分配决策，并提出了一种可以实现集中式解决方案的简单机制。作为扩展，在存在营销努力将商店流量从高峰时间转移到非高峰时间的情况下，我们解决了预算分配问题，并表明我们的初步发现是可靠的。此外，我们说明了如何使用预算分配模型的解决方案来促进商店级别的销售人员计划/调度决策。基于模型的结果，我们提出了一些见解，可以帮助管理人员进行预算分配和销售队伍计划。

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