Journal of the Faculty of Engineering and Architecture of Gazi University, cilt.41, sa.1, ss.693-701, 2026 (SCI-Expanded, Scopus, TRDizin)
This study addresses the significant role of product substitution in retail for enhancing customer satisfaction and optimizing sales performance. Substitution occurs when a desired product is unavailable, leading consumers to select alternative products that fulfill similar needs. This process is particularly crucial in industries with extensive product variety and high customer expectations. The study introduces Gower's Similarity Score as an effective method for identifying substitute products based solely on product attributes, even in the absence of historical sales data. By leveraging Gower's similarity metric, the approach integrates mixed data types-categorical, binary, and continuous variables-to calculate product similarities. The results demonstrate that the proposed method identifies substitutes with high consistency in sales behavior, thereby validating the reliability of this data-driven framework. The findings contribute valuable insights into demand forecasting and assortment planning, offering a robust solution for mitigating risks related to product unavailability and optimizing inventory decisions in dynamic retail markets.