Understanding Consumer Reactions to Assortment Unavailability

More documents

Recommendations

Info

infrequently in the sample stores and therefore did not make a purchase before the delisting in the studied time period. Because the detergent sales of new buyers equal 0 before the delisting, we cannot apply the same methodology as we did previously. Instead, we consider the detergent sales generated by the new buyers relative to the total detergent sales. For all stores, we expect this percentage to increase over time, because some households that bought detergent before the delisting may stop purchasing detergents at the store but more and more new households will enter. The stores in which the assortment reduction actually took place may attract more new buyers relative to the control stores, which will lead to a larger percentage of purchases made by new buyers. Figure 4.5: Sales effect due to entrance of new buyers To quantify the difference, we again perform a regression analysis using spline functions (see 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Baseline sales generated by new buyers (% of total detergent sales) 2003 Additional sales generated by new buyers in test stores (% of total detergent sales) 2003 Figure 4.5). We initiate our analysis two weeks after the start of the delisting. In Figure 4.5, the top graph shows the estimated baseline effect, which demonstrates that, regardless of the delisting, the percentage of sales attributed to new buyers tends to increase over time. The bottom graph shows the additional effect in the test stores, namely, the additional share of sales of the new buyers in the test store. Immediately following the delisting, there is no significant difference between the control and the test stores. However, at the conclusion of our sample, the 111
new buyers generate 28% of the sales in the control store and 38% in the test stores, which is a significant difference (p < 0.01). A possible explanation for this finding is that the reduced assortment enhanced search efficiency and thereby attracted more new buyers than did the nonreduced assortment. In an additional study executed within the test stores, we verify if the reduced assortment created more search efficiency. 4.6 Additional study To further understand the sales effects we uncovered, we conducted an additional study in which we investigated whether perceived assortment variety, perceived search efficiency, assortment satisfaction, and actual search time change due to assortment reductions. Search efficiency in particular might be increased, whereas search time might be decreased. These changes may in turn explain why we find a significant increase in category sales from new buyers in the test stores. 4.6.1. Research methodology Data collection. In the two test stores, we collected data one week before and twelve weeks after the assortment reduction. 19 Customers were observed by experienced interviewers from a research agency as they made their detergent purchases. Directly after the customer bought the detergent, the interviewer contacted this buyer to determine whether he or she would participate in this study. In total, 333 respondents participated in the in-store survey (before purchase: 179, after purchase: 154; total response percentage 65%). To assess whether the participants in the before and after surveys had the same background, we collected demographic variables such as gender, age, and household size, as well as buying behavior variables such as primary buyer, store loyalty, store visit frequency, and detergent buying frequency. Using pairwise t-tests and chi-square tests, we did not find any significant differences between the two samples for these variables. 19 Given an interpurchase time of approximately four weeks for detergents, we conduct the after-purchase survey twelve weeks after the delisting took place to give consumers enough time to get used to the new shelf. 112
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 100 and 101: therefore might question the existe
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 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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?