On the rank-based selection strategy for the group interview problem

For the so-called group interview problem in which several groups of choice alternatives are presented sequentially to the decision maker, the optimal selection strategy is derived that minimizes the expected rank of the selected choice or purchased product. For the case in which the sequence of groups can be rearranged by the decision maker, a simple heuristic procedure is proposed for obtaining a near-optimal sequence of groups, and the performance of the heuristic procedure in a Monte Carlo simulation is accessed. According to the heuristic procedure, the consumer is advised to visit smaller stores first and then move to larger stores later to increase the likelihood of finding a better product. Finally, the optimal selection strategy and the heuristic procedure are compared with those proposed by Chun, Moskowitz, and Plante and the problem of locating a new store in an area where there are several competing stores is discussed. The optimal selection strategy and the heuristic procedure can be applied to many sequential decision problems such as the consumer search and purchase process.