IDEAS home Printed from https://ideas.repec.org/a/eee/jouret/v87y2011is1ps17-s28.html
   My bibliography  Save this article

Strategic Assortment Decisions in Information-Intensive and Turbulent Environments

Author

Listed:
  • Dekimpe, Marnik G.
  • Gielens, Katrijn
  • Raju, Jagmohan
  • Thomas, Jacquelyn S.

Abstract

Recent trends in the environment have caused changes in consumers’ store patronage, price sensitivity, and need for variety. These changes have led retailers to reconsider some of their assortment options. Specifically, we discuss how they may have led some retailers to move from a single-format to a multiple-format channel portfolio, how they may have contributed to the growth of the discount format, and how they tend to influence the private-label portfolio of many retailers. We end by showing how these assortment changes may, in turn, have various welfare, logistical, and tactical implications.

Suggested Citation

  • Dekimpe, Marnik G. & Gielens, Katrijn & Raju, Jagmohan & Thomas, Jacquelyn S., 2011. "Strategic Assortment Decisions in Information-Intensive and Turbulent Environments," Journal of Retailing, Elsevier, vol. 87(S1), pages 17-28.
  • Handle: RePEc:eee:jouret:v:87:y:2011:i:s1:p:s17-s28
    DOI: 10.1016/j.jretai.2011.04.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022435911000352
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretai.2011.04.006?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. Upender Subramanian & Jagmohan S. Raju & Sanjay K. Dhar & Yusong Wang, 2010. "Competitive Consequences of Using a Category Captain," Management Science, INFORMS, vol. 56(10), pages 1739-1765, October.
    2. Russell Abratt & Stephen Donald Goodey, 1990. "Unplanned buying and in‐store stimuli in supermarkets," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 11(2), pages 111-121, May.
    3. Raj Sethuraman, 2009. "Assessing the External Validity of Analytical Results from National Brand and Store Brand Competition Models," Marketing Science, INFORMS, vol. 28(4), pages 759-781, 07-08.
    4. Serdar Sayman & Stephen J. Hoch & Jagmohan S. Raju, 2002. "Positioning of Store Brands," Marketing Science, INFORMS, vol. 21(4), pages 378-397, June.
    5. Grewal, Dhruv & Levy, Michael & Kumar, V., 2009. "Customer Experience Management in Retailing: An Organizing Framework," Journal of Retailing, Elsevier, vol. 85(1), pages 1-14.
    6. Randolph E. Bucklin & James M. Lattin, 1991. "A Two-State Model of Purchase Incidence and Brand Choice," Marketing Science, INFORMS, vol. 10(1), pages 24-39.
    7. Kristine de Valck & Roberts V. Kozinets & Andrea C. Wojnicki & Sarah J.S. Wilner, 2010. "Networked Narratives: Understanding Word-of-Mouth Marketing in Online Communities," Post-Print hal-00458424, HAL.
    8. Dmitri Kuksov & J. Miguel Villas-Boas, 2010. "When More Alternatives Lead to Less Choice," Marketing Science, INFORMS, vol. 29(3), pages 507-524, 05-06.
    9. Deleersnyder, B. & Dekimpe, M.G. & Steenkamp, J.E.B.M. & Koll, O., 2007. "Win-win strategies at discount stores," Other publications TiSEM 34fbe624-0ee7-4c52-b640-7, Tilburg University, School of Economics and Management.
    10. 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.
    11. Borghini, Stefania & Diamond, Nina & Kozinets, Robert V. & McGrath, Mary Ann & Muñiz, Albert M. & Sherry, John F., 2009. "Why Are Themed Brandstores So Powerful? Retail Brand Ideology at American Girl Place," Journal of Retailing, Elsevier, vol. 85(3), pages 363-375.
    12. Susan M. Broniarczyk & Wayne D. Hoyer, 2006. "Retail Assortment: More ≠ Better," Springer Books, in: Manfred Krafft & Murali K. Mantrala (ed.), Retailing in the 21st Century, pages 225-238, Springer.
    13. J. Miguel Villas-Boas, 1998. "Product Line Design for a Distribution Channel," Marketing Science, INFORMS, vol. 17(2), pages 156-169.
    14. Gijsbrechts, E. & Campo, K. & Nisol, P., 2005. "Beyond Promotion-Based Store Switching : Antecedents and Consequences of Systematic Multiple-Store Shopping," Discussion Paper 2005-76, Tilburg University, Center for Economic Research.
    15. Barbara Deleersnyder & Marnik G. Dekimpe & Miklos Sarvary & Philip M. Parker, 2004. "Weathering Tight Economic Times: The Sales Evolution of Consumer Durables Over the Business Cycle," Quantitative Marketing and Economics (QME), Springer, vol. 2(4), pages 347-383, December.
    16. Walters, Rockney G. & Jamil, Maqbul, 2003. "Exploring the relationships between shopping trip type, purchases of products on promotion, and shopping basket profit," Journal of Business Research, Elsevier, vol. 56(1), pages 17-29, January.
    17. Koen Pauwels & Shuba Srinivasan, 2004. "Who Benefits from Store Brand Entry?," Marketing Science, INFORMS, vol. 23(3), pages 364-390, July.
    18. André Bonfrer & Pradeep K. Chintagunta, 2004. "Store Brands: Who Buys Them and What Happens to Retail Prices When They Are Introduced?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(2), pages 195-218, March.
    19. Cornelissen, Gert & Pandelaere, Mario & Warlop, Luk & Dewitte, Siegfried, 2008. "Positive cueing: Promoting sustainable consumer behavior by cueing common environmental behaviors as environmental," International Journal of Research in Marketing, Elsevier, vol. 25(1), pages 46-55.
    20. Erik Brynjolfsson & Yu (Jeffrey) Hu & Duncan Simester, 2011. "Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales," Management Science, INFORMS, vol. 57(8), pages 1373-1386, August.
    21. Jerry Hausman & Ephraim Leibtag, 2007. "Consumer benefits from increased competition in shopping outlets: Measuring the effect of Wal-Mart," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1157-1177.
    22. Robert W. Staiger & Frank A. Wolak, 1992. "Collusive Pricing with Capacity Constraints in the Presence of Demand Uncertainty," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 203-220, Summer.
    23. Bart J. Bronnenberg & Luc Wathieu, 1996. "Asymmetric Promotion Effects and Brand Positioning," Marketing Science, INFORMS, vol. 15(4), pages 379-394.
    24. Sanjay K. Dhar & Stephen J. Hoch, 1997. "Why Store Brand Penetration Varies by Retailer," Marketing Science, INFORMS, vol. 16(3), pages 208-227.
    25. Sharad Borle & Peter Boatwright & Joseph B. Kadane & Joseph C. Nunes & Shmueli Galit, 2005. "The Effect of Product Assortment Changes on Customer Retention," Marketing Science, INFORMS, vol. 24(4), pages 616-622, July.
    26. Michaela Draganska & Dipak C. Jain, 2005. "Product‐Line Length as a Competitive Tool," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(1), pages 1-28, March.
    27. Zhang, Jie & Farris, Paul W. & Irvin, John W. & Kushwaha, Tarun & Steenburgh, Thomas J. & Weitz, Barton A., 2010. "Crafting Integrated Multichannel Retailing Strategies," Journal of Interactive Marketing, Elsevier, vol. 24(2), pages 168-180.
    28. Kathleen Cleeren & Frank Verboven & Marnik G. Dekimpe & Katrijn Gielens, 2010. "Intra- and Interformat Competition Among Discounters and Supermarkets," Marketing Science, INFORMS, vol. 29(3), pages 456-473, 05-06.
    29. Edward J. Fox & Raj Sethuraman, 2006. "Retail Competition," Springer Books, in: Manfred Krafft & Murali K. Mantrala (ed.), Retailing in the 21st Century, pages 193-208, Springer.
    30. Alan L. Montgomery, 1997. "Creating Micro-Marketing Pricing Strategies Using Supermarket Scanner Data," Marketing Science, INFORMS, vol. 16(4), pages 315-337.
    31. Kostas Axarloglou, 2003. "The Cyclicality of New Product Introductions," The Journal of Business, University of Chicago Press, vol. 76(1), pages 29-48, January.
    32. Puccinelli, Nancy M. & Goodstein, Ronald C. & Grewal, Dhruv & Price, Robert & Raghubir, Priya & Stewart, David, 2009. "Customer Experience Management in Retailing: Understanding the Buying Process," Journal of Retailing, Elsevier, vol. 85(1), pages 15-30.
    33. Gijsbrechts, Els & Campo, Katia & Nisol, Patricia, 2008. "Beyond promotion-based store switching: Antecedents and patterns of systematic multiple-store shopping," International Journal of Research in Marketing, Elsevier, vol. 25(1), pages 5-21.
    34. Chernev, Alexander, 2003. "When More Is Less and Less Is More: The Role of Ideal Point Availability and Assortment in Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 170-183, September.
    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. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J. & Esteban-Millat, Irene, 2017. "The role of consumers' attitude towards economic climate in their reaction to ‘PL-only’ assortments: Evidence from the United States and Spain," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 340-348.
    2. ter Braak, Anne & Geyskens, Inge & Dekimpe, Marnik G., 2014. "Taking private labels upmarket: Empirical generalizations on category drivers of premium private label introductions," Journal of Retailing, Elsevier, vol. 90(2), pages 125-140.
    3. Xiao, Tiaojun & Choi, Tsan-Ming & Cheng, T.C.E., 2014. "Product variety and channel structure strategy for a retailer-Stackelberg supply chain," European Journal of Operational Research, Elsevier, vol. 233(1), pages 114-124.
    4. Óscar González-Benito & Mercedes Martos-Partal, 2014. "Price sensitivity versus perceived quality: moderating effects of retailer positioning on private label consumption," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(5), pages 935-950, November.
    5. Aguirre, Elizabeth & Mahr, Dominik & Grewal, Dhruv & de Ruyter, Ko & Wetzels, Martin, 2015. "Unraveling the Personalization Paradox: The Effect of Information Collection and Trust-Building Strategies on Online Advertisement Effectiveness," Journal of Retailing, Elsevier, vol. 91(1), pages 34-49.
    6. Kim, Nayeong & Lee, Dongmin & Cho, Seonghwan & Moon, Junghoon, 2023. "The effect of exclusive distribution on the sales of ready-made meals in online retail," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    7. Shankar, Venkatesh & Inman, J. Jeffrey & Mantrala, Murali & Kelley, Eileen & Rizley, Ross, 2011. "Innovations in Shopper Marketing: Current Insights and Future Research Issues," Journal of Retailing, Elsevier, vol. 87(S1), pages 29-42.
    8. Akrout Houcine & Kaswengi Joseph, 2019. "Choosing Organic and Healthy Food in Times of Economic Uncertainty: Evidence from Panel Data Analysis in France," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(1), pages 1-13, May.
    9. Ter Braak, A.M., 2012. "A new era in retail : Private-label production by national-brand manufacturers and premium-quality private labels," Other publications TiSEM ca6b716b-bcd3-4a09-aa00-d, Tilburg University, School of Economics and Management.
    10. Marnik G. Dekimpe & Barbara Deleersnyder, 2018. "Business cycle research in marketing: a review and research agenda," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 31-58, January.
    11. 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.
    12. Vroegrijk, Mark & Gijsbrechts, Els & Campo, Katia, 2016. "Battling for the Household's Category Buck: Can Economy Private Labels Defend Supermarkets Against the Hard-Discounter Threat?," Journal of Retailing, Elsevier, vol. 92(3), pages 300-318.
    13. Hökelekli, Gizem & Lamey, Lien & Verboven, Frank, 2017. "Private label line proliferation and private label tier pricing: A new dimension of competition between private labels and national brands," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 39-52.
    14. Tomasz Brzęczek, 2020. "Optimisation of product portfolio sales and their risk subject to product width and diversity," Review of Managerial Science, Springer, vol. 14(5), pages 1009-1027, October.
    15. Cambra-Fierro, Jesús & Gao, Lily (Xuehui) & Melero-Polo, Iguácel & Trifu, Andreea, 2021. "How do firms handle variability in customer experience? A dynamic approach to better understanding customer retention," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).

    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. Inge Geyskens & Barbara Deleersnyder & Marnik G. Dekimpe & Didi Lin, 2024. "Do consumers benefit from national-brand listings by hard discounters?," Journal of the Academy of Marketing Science, Springer, vol. 52(1), pages 97-118, January.
    2. Hökelekli, Gizem & Lamey, Lien & Verboven, Frank, 2017. "The battle of traditional retailers versus discounters: The role of PL tiers," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 11-22.
    3. Haans, Hans & Gijsbrechts, Els, 2011. "“One-deal-fits-all?” On Category Sales Promotion Effectiveness in Smaller versus Larger Supermarkets," Journal of Retailing, Elsevier, vol. 87(4), pages 427-443.
    4. Lourenço, Carlos J.S. & Gijsbrechts, Els, 2013. "The impact of national brand introductions on hard-discounter image and share-of-wallet," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 368-382.
    5. Sherif Nasser & Danko Turcic & Chakravarthi Narasimhan, 2013. "National Brand's Response to Store Brands: Throw In the Towel or Fight Back?," Marketing Science, INFORMS, vol. 32(4), pages 591-608, July.
    6. Haans, A.J. & Gijsbrechts, E., 2011. "One-deal-fits-all? : On category sales promotion effectiveness in smaller versus larger supermarkets," Other publications TiSEM 2c1a69db-bdfa-4988-a84c-4, Tilburg University, School of Economics and Management.
    7. Wu, Lifang & Yang, Wei & Wu, Jessica, 2021. "Private label management: A literature review," Journal of Business Research, Elsevier, vol. 125(C), pages 368-384.
    8. Swoboda, Bernhard & Berg, Bettina & Schramm-Klein, Hanna & Foscht, Thomas, 2013. "The importance of retail brand equity and store accessibility for store loyalty in local competition," Journal of Retailing and Consumer Services, Elsevier, vol. 20(3), pages 251-262.
    9. MANEZ, Juan A. & MONER-COLONQUES, Rafael & SEMPERE-MONERRIS, José J. & URBANO, Amparo, 2011. "Price differentials among brands in retail distribution: product quality and service quality," LIDAM Discussion Papers CORE 2011017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Cheng, Rong & Duan, Yongrui & Zhang, Jianguang & Ke, Hua, 2021. "Impacts of store-brand introduction on a multiple-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 292(2), pages 652-662.
    11. Raj Sethuraman, 2009. "Assessing the External Validity of Analytical Results from National Brand and Store Brand Competition Models," Marketing Science, INFORMS, vol. 28(4), pages 759-781, 07-08.
    12. Yasin Alan & Mümin Kurtuluş & Chunlin Wang, 2019. "The Role of Store Brand Spillover in a Retailer’s Category Management Strategy," Manufacturing & Service Operations Management, INFORMS, vol. 21(3), pages 620-635, July.
    13. Rong Luo, 2018. "Store brands and retail grocery competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(4), pages 653-668, October.
    14. Juan A. Mañez & Rafael Moner Colonques & Jose J. Sempere-Monerris & Amparo Urbano, 2016. "Brand price differentials in retail distribution: product quality and service quality," Applied Economics, Taylor & Francis Journals, vol. 48(59), pages 5749-5760, December.
    15. ter Braak, Anne & Deleersnyder, Barbara & Geyskens, Inge & Dekimpe, Marnik G., 2013. "Does private-label production by national-brand manufacturers create discounter goodwill?," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 343-357.
    16. Xue Li & Xiaoqiang Cai & Jian Chen, 2022. "Quality and Private Label Encroachment Strategy," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 374-390, January.
    17. Keller, Kristopher O. & Dekimpe, Marnik G. & Geyskens, Inge, 2022. "Adding budget and premium private labels to standard private labels: Established empirical generalizations, emerging empirical insights, and future research," Journal of Retailing, Elsevier, vol. 98(1), pages 5-23.
    18. Grewal, Dhruv & Levy, Michael & Kumar, V., 2009. "Customer Experience Management in Retailing: An Organizing Framework," Journal of Retailing, Elsevier, vol. 85(1), pages 1-14.
    19. Minha Hwang & Raphael Thomadsen, 2016. "How Point-of-Sale Marketing Mix Impacts National-Brand Purchase Shares," Management Science, INFORMS, vol. 62(2), pages 571-590, February.
    20. Sethuraman, Raj & Gielens, Katrijn, 2014. "Determinants of Store Brand Share," Journal of Retailing, Elsevier, vol. 90(2), pages 141-153.

    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:jouret:v:87:y:2011:i:s1:p:s17-s28. 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/journal-of-retailing .

    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.