Designing Layouts for Sequential Experiences: Application to Cultural Institutions

82 Pages Posted: 19 Jul 2022 Last revised: 6 Feb 2024

See all articles by Ali Aouad

Ali Aouad

London Business School

Abhishek Deshmane

Georgia Institute of Technology - Scheller College of Business

Victor Martinez-de-Albeniz

IESE Business School - University of Navarra

Date Written: July 9, 2022

Abstract

A fundamental issue faced by experience providers--ranging from retail to culture--is displaying a collection of items for physical and digital interactions. The arrangement of the exhibits in different locations, which we call the layout, affects the visitors' choices over time and space, thereby driving their engagement with the offered experience. In a collaboration with the Van Gogh Museum (Netherlands), we develop a predict-then-optimize framework to inform such operational decisions. First, we propose a sequential choice model, called Pathway MNL, that represents visitor activity as a sequence of conditional logit outcomes influenced by the layout. Estimation on large-scale visitor activity log recorded on multimedia guides uncovers significant relationships between visitors' choices and layout distances, artwork characteristics, and various contextual features. Counter-intuitively, in response to more congestion, visitors interact with more exhibits, including less prominent artworks. Our model predicts the next visitor transition with an out-of-sample accuracy of 63%. We test the predictive accuracy of our model against several benchmarks and modified layouts from natural experiments. Finally, we formulate the layout optimization problem, where the goal is to assign artworks to different locations to maximize the expected length of visitors' paths. We establish a strong inapproximability result for this new optimization setting. Our simulations suggest that optimized layouts might lift visitor engagement by improving proximity and retention exerted by the layout.

Keywords: Customer paths, Sequential choice, Assignment problem, Cultural sector operations

Suggested Citation

Aouad, Ali and Deshmane, Abhishek and Martinez-de-Albeniz, Victor, Designing Layouts for Sequential Experiences: Application to Cultural Institutions (July 9, 2022). IESE Business School Working Paper, Available at SSRN: https://ssrn.com/abstract=4158587 or http://dx.doi.org/10.2139/ssrn.4158587

Ali Aouad

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

Abhishek Deshmane (Contact Author)

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

Victor Martinez-de-Albeniz

IESE Business School - University of Navarra ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

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