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Estimation of Product Category Sales’ Responsiveness to Assortment Size

In: National Brands and Private Labels in Retailing

Author

Listed:
  • Juan Carlos Gázquez-Abad

    (University of Almería)

  • Francisco J. Martínez-López

    (University of Granada
    Open University of Catalonia)

Abstract

Assortment is one of the most important competitive tools a retailer has at his disposal to gain sustainable differentiation. Offering more variety should help a retailer to attract more consumers into the store and direct them towards the category as well as induce them to make purchases once inside. This paper presents an empirical estimate of assortment size elasticities of 12 FMCG categories across five store formats. Results show that assortment size elasticities are higher for fill-in categories, i.e., those categories bought occasionally by a small percentage of households, and which are dependent on store format.

Suggested Citation

  • Juan Carlos Gázquez-Abad & Francisco J. Martínez-López, 2014. "Estimation of Product Category Sales’ Responsiveness to Assortment Size," Springer Proceedings in Business and Economics, in: Juan Carlos Gázquez-Abad & Francisco J. Martínez-López & Irene Esteban-Millat & Juan Antonio Mondéja (ed.), National Brands and Private Labels in Retailing, edition 127, pages 3-15, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-07194-7_1
    DOI: 10.1007/978-3-319-07194-7_1
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