Understanding Consumer Reactions to Assortment Unavailability

More documents

Recommendations

Info

therefore might question the existence of a long-run negative sales effect of an assortment reduction. To summarize our total discussion of these expected sales effects, we offer Figure 4.1, which clearly shows the expected sales effect among different groups of category buyers. Figure 4.1: Expected sales effects of an assortment reduction among different groups of buyers GROUP OF CUSTOMERS Former Buyers Nondelisted Items Former Buyers Nondelisted Items New Buyers 4.4 Research methodology 4.4.1 Data Postponement Item Switch Store Switch BEHAVIOR EXPECTED EFFECT We analyze customer loyalty card data to measure the effect of the assortment reduction on category sales. Data on household purchases is available for two stores in which the assortment reduction actually took place and two control stores in which the assortment remained unchanged. These control stores are essential to distinguish between the effects of the delisting and other exogenous changes in sales. The selected stores are geographically quite far apart, so it is unlikely that a household will visit more than one store in our sample. 99 Item Switch Store Switch No Sales Effect Initial Negative Sales Effect, Initial Negative Sales Effect, No Sales Effect Negative Sales Effect Positive Sales Effect
The retailer supplied a database detailing the purchases of 26,941 households in the detergent category in the four stores. The data are based on purchases by individual households that participated in the customer loyalty card program of the participating retailer, which account for more than 80% of total store sales. The data cover a period of 52 weeks, 26 weeks before and 26 weeks after the assortment reduction was implemented. 4.4.2 Decomposition of sales effects The preceding theoretical discussion reveals that sales effects might differ across groups of retail customers. To formally investigate this possibility, we decompose the sales effects for these different groups of buyers. Previous studies decomposed sales effects of marketing actions, such as promotions, on the basis of the behavioral source of this effect (i.e. category expansion, brand switching, stockpiling) (Van Heerde, Gupta, and Wittink 2003; Van Heerde, Leeflang, and Wittink 2004). In this study, we decompose sales effects on the basis of the type of customer, where the type is determined by that consumer’s behavior before the delisting (T1). That is, we consider three customer groups in our database: (1) former category buyers of delisted items before the assortment reduction, (2) former category buyers of nondelisted items before the assortment reduction, and (3) new category buyers after the assortment reduction (noncategory buyers in the 26 weeks before the assortment reduction). The category sales after the assortment reduction at time T1 can thus be formally decomposed as follows: Salest = Salest,1 + Salest,2 + Salest,3 t > T1. (1) In our analysis, we first consider the total sales effects. Subsequently, we focus on former category buyers only, thereby distinguishing between buyers of delisted items and nonbuyers of delisted items. Households that have not bought detergents before the delisting cannot be assigned to either subpopulation, so our final analysis focuses on the entrance of these new buyers. For clarity, we provide an overview of our separate analyses in Table 4.2, which also contains the different samples of customers for which we executed these analyses. We expect that the percentage of preferred items delisted will affect the impact of the assortment reduction on household behavior. Although it would be interesting to investigate this hypothesis, we lack sufficient data to test it. We therefore focus on our binary distinction; that is, we consider households that have bought a delisted item and households that have not done so. 100
Page 1 and 2:
LAURENS SLOOT Understanding Consume
Page 4 and 5:
UNDERSTANDING CONSUMER REACTIONS TO
Page 6 and 7:
PREFACE (IN DUTCH) Begin 2001 schre
Page 8 and 9:
TABLE OF CONTENTS Preface (in Dutch
Page 10 and 11:
3.7 Study 2 74 3.8 Hypotheses 74 3.
Page 12 and 13:
CHAPTER 1: INTRODUCTION AND OVERVIE
Page 14 and 15:
Most supply chain-oriented reductio
Page 16 and 17:
400 square meters) are disappearing
Page 18 and 19:
more. However, Aldi is known to be
Page 20 and 21:
antecedents, such as the brand equi
Page 22 and 23:
of assortment reduction responses a
Page 24 and 25:
assortment benefits and assortment
Page 26 and 27:
2.1 Introduction Out-of-stock (OOS)
Page 28 and 29:
other explanatory studies, we study
Page 30 and 31:
Studies that apply exploratory desi
Page 32 and 33:
Table 2.2: Methodological overview
Page 34 and 35:
Situation-related variables. Situat
Page 36 and 37:
As noted, consumers generally prefe
Page 38 and 39:
2.3.3 The interaction of hedonic le
Page 40 and 41:
For example, supermarkets are usual
Page 42 and 43:
were selected for further analyses.
Page 44 and 45:
example, a key utilitarian benefit
Page 46 and 47:
The mathematical formulation of the
Page 48 and 49:
Table 2.6: Correlation matrix depen
Page 50 and 51: correlation between the hedonic lev
Page 52 and 53: 2.6 Discussion In this study, we in
Page 54 and 55: Following the literature on promoti
Page 56 and 57: consider this finding when they att
Page 58 and 59: Appendix 2A: Overview and definitio
Page 60 and 61: CHAPTER 3 UNDERSTANDING THE IMPACT
Page 62 and 63: the Dutch food retailer Edah delist
Page 64 and 65: FMI (1993) conducts natural experim
Page 66 and 67: customers no longer or less frequen
Page 68 and 69: extent, comparable to the tendency
Page 70 and 71: Figure 3.1: Graphical display of as
Page 72 and 73: consumers evaluate assortments that
Page 74 and 75: Figure 3.3: Interaction effect of a
Page 76 and 77: SSI (H1). We expect that the brand
Page 78 and 79: 3.8.4 Store-related antecedents Fin
Page 80 and 81: among the 10 specified product grou
Page 82 and 83: Retail assortment-related anteceden
Page 84 and 85: Table 3.4: Average, standard deviat
Page 86 and 87: 3.10.2 Store switching intentions W
Page 88 and 89: effects indicated in Study 1 (β =
Page 90 and 91: 3.12 Managerial implications Retail
Page 92 and 93: Appendix 3A: Overview and definitio
Page 94 and 95: 4.1 Introduction Since the early 19
Page 96 and 97: changes in assortment perceptions (
Page 98 and 99: Negative sales effects may occur be
Page 102 and 103: Table 4.2: Overview of separate ana
Page 104 and 105: analogously. The resulting complete
Page 106 and 107: changes in the price level do not i
Page 108 and 109: Table 4.4: Estimated parameters for
Page 110 and 111: Table 4.5: Estimated parameters for
Page 112 and 113: infrequently in the sample stores a
Page 114 and 115: Measurement. Following Hoch, Bradlo
Page 116 and 117: 4.7 Discussion In this collaborativ
Page 118 and 119: into consequences at the customer l
Page 120 and 121: eduction occurs, and the type of st
Page 122 and 123: Manufacturers in hedonic product gr
Page 124 and 125: 2. When retailers set priorities fo
Page 126 and 127: References Aaker, David A. (1991),
Page 128 and 129: Broniarczyk, Susan M. and Wayne D.
Page 130 and 131: Franses, Philip Hans and Richard Pa
Page 132 and 133: Narasimhan, Chakravartthi, Scott A.
Page 134 and 135: Van Trijp, Hans C.M., Wayne D. Hoye
Page 136 and 137: de rol van het assortiment bij het
Page 138 and 139: die het out-of-stock niveau binnen
Page 140 and 141: Campbell, R.A.J., Rethinking Risk i
Page 142 and 143: Langen, P.W. de, The Performance of
Page 144 and 145: Slager, A.M.H., Banking across Bord
show all

Understanding Consumer Reactions to Assortment Unavailability

Create successful ePaper yourself

Delete template?

Save as template?