Doing the math
When consumers look at cars at an auto dealership, they have speed on their minds — and not necessarily the sort measured by 0-to-60 acceleration. Rather, they want to buy cars quickly: Evidence shows that people tend to purchase something that’s available on the lot, rather than waiting for an order to arrive from another site, even though an auto is a major purchase. This presents an interesting problem for dealers and manufacturers: Considering factors such as popularity and profit margin, what’s the optimal mix of models to showcase on the lot, given that buyers can be steered toward what’s available? Vivek Farias builds mathematical tools that can answer this for automakers and dealers — as well as tools that can help businesses in online searches and recommendations: If a customer enjoyed one purchase, what are the best recommendations for future products? Vivek Farias Photo: Bryce Vickmark ...