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Understanding Consumer Reactions to Assortment Unavailability

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hypothetical s<strong>to</strong>ck-outs in a wide variety of product groups. In Chapters 3 and 4, we present<br />

essays that study the effects of permanent assortment unavailability on variables such as category<br />

sales, s<strong>to</strong>re sales, complaining behavior, assortment satisfaction, and perceived assortment<br />

variety. In Chapter 3, we specifically address the situation in which a retailer delists one brand<br />

within a category, whereas in Chapter 4 we focus on the situation in which a retailer cuts a<br />

category assortment by 25%.<br />

The current chapter continues with a general discussion of the Dutch supermarket channel,<br />

which will give the reader a general understanding of the context in which the studies <strong>to</strong>ok place.<br />

In section 1.3, we discuss the importance of assortment and other retail mix variables, such as<br />

price and promotions, in the supermarket decision process of consumers. Next, we present the<br />

main research question of this thesis and the research methodology used in the studies <strong>to</strong> answer<br />

that question. We continue with a discussion of the scientific contributions of this thesis (section<br />

1.5). Finally, in section 1.6, we elaborate on the managerial relevance of the studies presented<br />

herein.<br />

1.2 Developments in the Dutch supermarket channel<br />

Because all the studies in this thesis are conducted with Dutch supermarkets, this section<br />

provides a description of the structure and main developments in the Dutch supermarket channel<br />

in the past decade. After reading this section, readers who might not be familiar with grocery<br />

retailing in general or the Dutch grocery retail sec<strong>to</strong>r in particular should be able <strong>to</strong> understand<br />

the research setting of the studies presented herein.<br />

The <strong>to</strong>tal turnover in the Dutch supermarket channel was euro 26.2 billion in 2004<br />

(ACNielsen 2005). Due <strong>to</strong> a severe price war, initiated in Oc<strong>to</strong>ber 2003 by market leader Albert<br />

Heijn, sales have been rather stable since that time. Also due <strong>to</strong> the price war, the net price level<br />

of grocery products has declined by more than 5% during the period Oc<strong>to</strong>ber 2003–September<br />

2005 (EFMI 2005).<br />

The number of supermarkets in the Netherlands is, similar <strong>to</strong> almost all western European<br />

countries, gradually decreasing (see Table 1.1). In 2004, there were 4,592 supermarkets in the<br />

Netherlands, down from 6,592 in 1995 (–30%). Small supermarkets (e.g., floor space less than<br />

14

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