Automated Promotion Machine: Emerging IS for the Retail Industry in China

Technical developments in information technologies coupled with business interests to improve promotion productivity, are spurring research in the area of information systems for sales promotion in retail industry, which facilitate promotion analysis and automate promotion implementation. Auto Promotion Machine (APM), presented in this paper, can perform promotion analysis based on consumer personal or household characteristics, history consumer purchasing information, and tracking data of consumer shopping process; carry out promotion implementation through interacting with consumer by in-store promotion terminal or online Internet terminal. Potential impacts of APM on retail industry are discussed form the perspectives of manufacturers, retail stores, and consumers, respectively. Two levels of APM are described, representing varying degrees of automation and intelligence. Some applications of APM in today’s business practice are showed according to the two levels. Finally, important topics in need of further study are identified, and can be followed by other researchers; thus, accelerate the cumulating of knowledge in using information technology to support sales promotion in retail industry.