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Understanding the Impact of Brand Delistings on Assortment Evaluations and Store Switching and Complaining Intentions

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  • Sloot, L.M.
  • Verhoef, P.C.

Abstract

Recently, retailers have begun considering which brands they can delist without reducing customer satisfaction, losing category sales, or increasing store switching behavior. Although several studies have considered assortment reductions, none has explicitly investigated the impact of total brand delistings. Therefore, the authors study the impact of brand delistings on assortment evaluations and store switching and complaining intentions. They execute both a controlled experiment and a survey and find that brand delisting mainly has negative consequences when the delisted brands have high equity, assortment size is limited, the assortment consists of a low proportion of high-equity brands, and the brand delistings take place in categories with high hedonic levels. The authors discuss the theoretical and managerial implications of these findings.

Suggested Citation

  • Sloot, L.M. & Verhoef, P.C., 2004. "Understanding the Impact of Brand Delistings on Assortment Evaluations and Store Switching and Complaining Intentions," ERIM Report Series Research in Management ERS-2004-114-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:1845
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    assortment management; assortment reduction; brand equity; category management; retail power; retailing; store brands;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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