Reducing Assortment : An Attribute-Based Approach  

Oleh:

Nunes, Joseph C. ; Boatwright, Peter

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Journal of Marketing (EBSCO) vol. 65 no. 3 (2001), page 50-63.
Topik: approach; reducing assortment; attribute - based approach

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ94.2 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Most supermarket categories are cluttered with items, or stockkeeping units (SKU s), that differ very little at the attribute level. Previous research has found that reductions (up to 54 %) in the number of low - selling SKU s need not affect perceptions of variety and therefore sales, significantly. In this research, the authors analyze data from a natural experiment conducted by an online grocer, in which 94 % of the categories experienced dramatic cuts in the number of SKU s offered, particularly low - selling SKU s. Sales were indeed affected dramatically, increasing an average of 11 % across the 42 categories examined. Sales rose in more than two - thirds of these categories, nearly half of which experienced an increase of 10 % or more; 75 % of households increased their overall expenditures after the cut in SKU s. In turn, the authors examine how different types of SKU reductions - defined by how the cuts affect the available attributes or features of a category (e. g., the number of brands) - affected purchase behavior differently. The results indicate that consumers experienced divergent reactions to the reduction in sizes, but they uniformly welcomed the elimination of clutter brought on by the reduction in redundant items. In addition, of households that were loyal to a single brand, size, or brand - size combination that was eliminated, nearly half continued purchasing within the category. Also, contrary to previous research on SKU reductions, the authors find that category sales depend on the total number of SKU s offered. The authors extend the previous research by showing that : (1) category sales depend on the availability of key product and category attributes and (2) two particularly important attributes to consumers in an assortment are brand and flavor.

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