The short- and long-term impact of an assortment reduction on category sales

Laurens M. Sloot*, Dennis Fok, Peter C. Verhoef

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

84 Citations (Scopus)

Abstract

In a collaborative study with a major Dutch retailer, the authors assess the short- and long-term effects of a 25% item reduction on-category sales. On an aggregate level, a major assortment reduction can lead to substantive short-term category sales losses but only a weak negative long-term category sales effect. Short-term category sales losses are caused mainly by fewer category purchases by former buyers of delisted detergent items. However, the results also show that the assortment reduction attracts new category buyers. These new buyers partially offset the sales losses among former buyers of the delisted items. The collection of supplemental process data on assortment perceptions and actual search time in the test stores before and after the assortment reduction provides evidence that delisting results in an increase in perceived search efficiency and a decrease in actual search time.

Original languageEnglish
Pages (from-to)536-548
Number of pages13
JournalJournal of Marketing Research
Volume43
Issue number4
Publication statusPublished - Nov-2006
EventConference on Collaborative Research -
Duration: 1-Dec-2004 → …

Keywords

  • ATTRIBUTE-BASED APPROACH
  • PRICE PROMOTIONS
  • SCANNER DATA
  • MANAGEMENT
  • VARIETY
  • CHOICE
  • PERSISTENCE
  • ELASTICITY
  • PRODUCTS
  • LEVEL

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