Omni-channel demand modeling and price optimization

A computer readable storage medium storing a program of instructions executable by a machine to perform a method of predicting demand of a product offered in multiple channels for a seller that has a plurality of physical store channels and one or more virtual channels, the method comprising:

• obtaining, by a processor, transaction log data associated with the one or more virtual channels, the transaction log data having records of sales transactions with location identifiers in the one or more virtual channels;
• segmenting, by the processor, the one or more virtual channels by locations based on locations of the physical stores and the location identifiers in the transaction log data;
• and
• estimating, by the processor, a demand model by location that incorporates demand for the multiple channels in that location and captures cross-effect of said multiple channels in the location based on historic sales and transaction data, the location being one of the locations.

A system for predicting demand of a product offered in multiple channels for a seller that has a plurality of physical store channels and one or more virtual channels, comprising:

• a processor;
• memory device;
• and
• a module operable to execute on the processor and obtain from the memory device, transaction log data associated with the one or more virtual channels, the transaction log data having records of sales transactions with location identifiers in the one or more virtual channels,
• the module further operable to segment the one or more virtual channels by locations based on locations of the physical stores and the location identifiers in the transaction log data,
• the module further operable to estimate a demand model by location that incorporates demand for the multiple channels in that location and captures cross-effect of said multiple channels in the location based on historic sales and transaction data, the location being one of the locations.