IDEAS home Printed from https://ideas.repec.org/h/spr/isochp/978-0-387-98026-3_3.html
   My bibliography  Save this book chapter

The Effect of Assortment Rotation on Consumer Choice and Its Impact on Competition

In: Consumer-Driven Demand and Operations Management Models

Author

Listed:
  • Felipe Caro

    (UCLA Anderson School of Management)

  • Victor Martínez-de-Albéeniz

    (University of Navarra)

Abstract

The recent success of fast fashion retailers has changed the (affordable) fashion industry dramatically. These companies, such as Zara, are characterized by a flexible supply chain that has allowed them to reduce design and production lead times to just a few weeks, rather than months. More importantly, they are using these capabilities to change the assortment (i.e., introduce new products) more frequently, which many practitioners claim increases sales, since there is evidence showing that customers visit more often the stores with fresher products. We propose in this chapter a customer consumption model with satiation and multiple competing retailers. The model implies that the consumers will spend a higher share of their budget in retailers that renovate the assortment at a faster pace. Using the insights from the model, we determine how often retailers should change the assortment in the competitive equilibrium.

Suggested Citation

  • Felipe Caro & Victor Martínez-de-Albéeniz, 2009. "The Effect of Assortment Rotation on Consumer Choice and Its Impact on Competition," International Series in Operations Research & Management Science, in: Christopher S. Tang & Serguei Netessine (ed.), Consumer-Driven Demand and Operations Management Models, edition 1, chapter 0, pages 63-79, Springer.
    • Handle: RePEc:spr:isochp:978-0-387-98026-3_3
    DOI: 10.1007/978-0-387-98026-3_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Tang, Christopher S., 2010. "A review of marketing-operations interface models: From co-existence to coordination and collaboration," International Journal of Production Economics, Elsevier, vol. 125(1), pages 22-40, May.

    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:spr:isochp:978-0-387-98026-3_3. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.