An Online Customized Bundling and Pricing Strategy for E-Tailers

This paper proposes an Online Customized Bundling and Pricing (OCBP) strategy, which provides each customer a particular bundle with corresponding price, for e-tailers to selling more goods and gaining more profits. We model the OCBP problem as a mixed-integer programming and design a heuristic algorism to solve the problem. Numerical studies show that a possible profit gain of 15-45 per cent could make it well worth investigating this approach to pricing.