“Incentive Planning System: A DSS for Planning Pricing and Promotions in the Automobile Industry” by Professor Jorge Silva-Risso (University of California, Riverside) and Irina Ionova (J.D. Power).
This work reports on a promotion analysis tool that enabled automobile manufacturers to improve the timing, frequency, and components of their promotional activity to maintain sales but reduce margin loss. The authors presented evidence of savings in the order of two billion dollars, with Daimler Chrylser executives alone claiming annual benefits of $500 million. The research used the sales data available to J D Power to help it work with individual car manufacturers to calculate the dynamic impact of sales promotions. The work was implemented in a phased approach, allowing an evolutionary increase in sophistication amongst its users.
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