IDEAS home Printed from https://ideas.repec.org/a/eee/aumajo/v20y2012i4p250-259.html
   My bibliography  Save this article

Market environment, assortment policy, and performance of small retailers

Author

Listed:
  • Cadeaux, Jack
  • Dubelaar, Chris

Abstract

This study surveys small retail pharmacies to examine the relationship between managers’ perceptions of local market environments, their stated assortment policies, and their reported performance levels for a large product category. Managers report wider assortments when market diversity and market munificence are high. In turn, wider assortments have a positive effect on reported relative category sales and stock. In addition, market uncertainty has a direct negative effect on reported margins. This study controls for both store space as well as the potential direct performance effects of the local market environment faced by small retailers.

Suggested Citation

  • Cadeaux, Jack & Dubelaar, Chris, 2012. "Market environment, assortment policy, and performance of small retailers," Australasian marketing journal, Elsevier, vol. 20(4), pages 250-259.
    • Handle: RePEc:eee:aumajo:v:20:y:2012:i:4:p:250-259
    DOI: 10.1016/j.ausmj.2012.05.013
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1441358212000250
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ausmj.2012.05.013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mantrala, Murali K. & Levy, Michael & Kahn, Barbara E. & Fox, Edward J. & Gaidarev, Peter & Dankworth, Bill & Shah, Denish, 2009. "Why is Assortment Planning so Difficult for Retailers? A Framework and Research Agenda," Journal of Retailing, Elsevier, vol. 85(1), pages 71-83.
    2. Garrett van Ryzin & Siddharth Mahajan, 1999. "On the Relationship Between Inventory Costs and Variety Benefits in Retail Assortments," Management Science, INFORMS, vol. 45(11), pages 1496-1509, November.
    3. Dubelaar, Chris & Bhargava, Mukesh & Ferrarin, David, 2002. "Measuring retail productivity: what really matters?," Journal of Business Research, Elsevier, vol. 55(5), pages 417-426, May.
    4. McQuitty, Shaun, 2004. "Statistical power and structural equation models in business research," Journal of Business Research, Elsevier, vol. 57(2), pages 175-183, February.
    5. Cadeaux, Jack M., 1994. "Flexibility and performance of branch store stock plans for a manufacturer's product line," Journal of Business Research, Elsevier, vol. 29(3), pages 207-218, March.
    6. Kim, Keysuk, 2002. "Output sector munificence and supplier control in industrial channels of distribution: a contingency approach," Journal of Business Research, Elsevier, vol. 55(6), pages 427-440, June.
    7. Scherer, F M, 1979. "The Welfare Economics of Product Variety: An Application to the Ready-to-Eat Cereals Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 28(2), pages 113-134, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Juan-Francisco Delgado-de Miguel & Tamar Buil-López Menchero & Miguel-Ángel Esteban-Navarro & Miguel-Ángel García-Madurga, 2019. "Proximity Trade and Urban Sustainability: Small Retailers’ Expectations Towards Local Online Marketplaces," Sustainability, MDPI, vol. 11(24), pages 1-20, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
    2. Sodero, Annibal C. & Namin, Aidin & Gauri, Dinesh K. & Bhaskaran, Sreekumar R., 2021. "The strategic drivers of drop-shipping and retail store sales for seasonal products," Journal of Retailing, Elsevier, vol. 97(4), pages 561-581.
    3. Morimura, Fumikazu & Sakagawa, Yuji, 2018. "Information technology use in retail chains: Impact on the standardisation of pricing and promotion strategies and performance," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 81-91.
    4. Amr Farahat & Joonkyum Lee, 2018. "The Multiproduct Newsvendor Problem with Customer Choice," Operations Research, INFORMS, vol. 66(1), pages 123-136, January.
    5. Çömez-Dolgan, Nagihan & Fescioglu-Unver, Nilgun & Cephe, Ecem & Şen, Alper, 2021. "Capacitated strategic assortment planning under explicit demand substitution," European Journal of Operational Research, Elsevier, vol. 294(3), pages 1120-1138.
    6. Bahng, Youngjin & Kincade, Doris H., 2014. "Retail buyer segmentation based on the use of assortment decision factors," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 643-652.
    7. Çömez-Dolgan, Nagihan & Moussawi-Haidar, Lama & Jaber, Mohamad Y. & Cephe, Ecem, 2022. "Capacitated assortment planning of a multi-location system under transshipments," International Journal of Production Economics, Elsevier, vol. 251(C).
    8. Wan, Xiang & Britto, Rodrigo & Zhou, Zenan, 2020. "In search of the negative relationship between product variety and inventory turnover," International Journal of Production Economics, Elsevier, vol. 222(C).
    9. Çömez-Dolgan, Nagihan & Dağ, Hilal & Fescioglu-Unver, Nilgun & Şen, Alper, 2023. "Multi-plant manufacturing assortment planning in the presence of transshipments," European Journal of Operational Research, Elsevier, vol. 310(3), pages 1033-1050.
    10. Stelios Tsafarakis & Charalampos Saridakis & Nikolaos Matsatsinis & George Baltas, 2016. "Private labels and retail assortment planning: a differential evolution approach," Annals of Operations Research, Springer, vol. 247(2), pages 677-692, December.
    11. Hübner, Alexander H. & Kuhn, Heinrich, 2012. "Retail category management: State-of-the-art review of quantitative research and software applications in assortment and shelf space management," Omega, Elsevier, vol. 40(2), pages 199-209, April.
    12. Bauer, Johannes C. & Kotouc, Alexander J. & Rudolph, Thomas, 2012. "What constitutes a “good assortment†? A scale for measuring consumers' perceptions of an assortment offered in a grocery category," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 11-26.
    13. Liane Nagengast & Christina Heidemann & Thomas Rudolph, 2013. "Der kombinierte Einsatz von Sortimentsreduktion und Regalkategorisierung zur Sortimentsoptimierung–," Schmalenbach Journal of Business Research, Springer, vol. 65(7), pages 666-687, December.
    14. Sousa, Carlos M.P. & Bradley, Frank, 2008. "Antecedents of international pricing adaptation and export performance," Journal of World Business, Elsevier, vol. 43(3), pages 307-320, July.
    15. Ruomeng Cui & Dennis J. Zhang & Achal Bassamboo, 2019. "Learning from Inventory Availability Information: Evidence from Field Experiments on Amazon," Management Science, INFORMS, vol. 65(3), pages 1216-1235, March.
    16. Xi Chen & Zachary Owen & Clark Pixton & David Simchi-Levi, 2022. "A Statistical Learning Approach to Personalization in Revenue Management," Management Science, INFORMS, vol. 68(3), pages 1923-1937, March.
    17. Yücel, Eda & Karaesmen, Fikri & Salman, F. Sibel & Türkay, Metin, 2009. "Optimizing product assortment under customer-driven demand substitution," European Journal of Operational Research, Elsevier, vol. 199(3), pages 759-768, December.
    18. Zhang, Wei & Rajaram, Kumar, 2017. "Managing limited retail space for basic products: Space sharing vs. space dedication," European Journal of Operational Research, Elsevier, vol. 263(3), pages 768-781.
    19. Minha Hwang & Bart J. Bronnenberg & Raphael Thomadsen, 2010. "An Empirical Analysis of Assortment Similarities Across U.S. Supermarkets," Marketing Science, INFORMS, vol. 29(5), pages 858-879, 09-10.
    20. Vishal Gaur & Young-Hoon Park, 2007. "Asymmetric Consumer Learning and Inventory Competition," Management Science, INFORMS, vol. 53(2), pages 227-240, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:aumajo:v:20:y:2012:i:4:p:250-259. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/australasian-marketing-journal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.