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Retail Assortment Planning Under Category Captainship

Author

Listed:
  • Mümin Kurtuluc{s}

    (Owen Graduate School of Management, Vanderbilt University, Nashville, Tennessee 37203)

  • Alper Nakkas

    (Department of Economics, Vanderbilt University, Nashville, Tennessee 37203)

Abstract

Retail assortment planning can have a tremendous impact on a retailer's bottom-line performance. Over the past years, retailers have increasingly relied on their leading manufacturers for recommendations regarding the assortment to be offered to the consumers in a particular category, a practice often referred to as category captainship. Our research investigates the consequences of using category captains for assortment selection decisions. We develop a game-theoretic model where multiple manufacturers sell their products to consumers through a single retailer. We compare a model where the retailer selects the assortment in the category with a model where the retailer relies on a category captain for assortment decisions in return for a target category profit. We show that category captainship can, in some circumstances, benefit not only the retailer and the category captain, but also the noncaptain manufacturers. Our results have implications regarding the implementation of category captainship practices.

Suggested Citation

  • Mümin Kurtuluc{s} & Alper Nakkas, 2011. "Retail Assortment Planning Under Category Captainship," Manufacturing & Service Operations Management, INFORMS, vol. 13(1), pages 124-142, March.
    • Handle: RePEc:inm:ormsom:v:13:y:2011:i:1:p:124-142
    DOI: 10.1287/msom.1100.0309
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    References listed on IDEAS

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    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.
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    6. Gérard P. Cachon & A. Gürhan Kök, 2007. "Category Management and Coordination in Retail Assortment Planning in the Presence of Basket Shopping Consumers," Management Science, INFORMS, vol. 53(6), pages 934-951, June.
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    Citations

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    Cited by:

    1. Myongjin Kim & Leilei Shen & Suman Basuroy & Sri Beldona, 2023. "One for all or all for one: Does the category captain play favourites," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(1), pages 87-113, February.
    2. Kurtuluş, Mümin & Ülkü, Sezer & Dotson, Jeffrey P. & Nakkas, Alper, 2014. "The Impact of Category Captainship on the Breadth and Appeal of a Retailer's Assortment," Journal of Retailing, Elsevier, vol. 90(3), pages 379-392.
    3. A. Gürhan Kök & Yi Xu, 2011. "Optimal and Competitive Assortments with Endogenous Pricing Under Hierarchical Consumer Choice Models," Management Science, INFORMS, vol. 57(9), pages 1546-1563, February.
    4. Mümin Kurtuluş & R. Canan Savaskan & Chunlin Wang, 2020. "Drivers and Implications of Direct‐Store‐Delivery in Distribution Channels," Production and Operations Management, Production and Operations Management Society, vol. 29(11), pages 2621-2636, November.
    5. Alper Nakkas & Yasin Alan & Mümin Kurtuluş, 2020. "Category Captainship in the Presence of Retail Competition," Production and Operations Management, Production and Operations Management Society, vol. 29(2), pages 263-280, February.
    6. Chan, Rebecca & Li, Zhaolin & Matsypura, Dmytro, 2020. "Assortment optimisation problem: A distribution-free approach," Omega, Elsevier, vol. 95(C).
    7. Özalp Özer & Upender Subramanian & Yu Wang, 2018. "Information Sharing, Advice Provision, or Delegation: What Leads to Higher Trust and Trustworthiness?," Management Science, INFORMS, vol. 64(1), pages 474-493, January.
    8. Felipe Caro & A. Gürhan Kök & Victor Martínez-de-Albéniz, 2020. "The Future of Retail Operations," Manufacturing & Service Operations Management, INFORMS, vol. 22(1), pages 47-58, January.
    9. Rucheva, A., 2015. "Determinants of joint supplier-retailer project performance in category management field," Working Papers 6423, Graduate School of Management, St. Petersburg State University.
    10. Shanshan Guo & H. Sebastian Heese, 2017. "Product variety and distribution channel structure," International Journal of Production Research, Taylor & Francis Journals, vol. 55(12), pages 3392-3410, June.

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