Increasing product variety: Conflicts in shelf space allocation
Abstract views: 179 / PDF downloads: 100
Keywords:Impulse buying, shelf space, product variety
The increasing product variety trend prevalent in most industries today does not stop at retailers. Unfortunately, this trend is a mounting task due to limited shelf space. Based on a survey of 376 people, this research provides an insightful picture of the connection between product variety and impulse buying decisions. One of the study's main findings is that product variety offered by retailers is one of the main in-store factors driving impulse purchases. Since the survey results show the importance of product variety for retailers, the paper also presents some concepts as to how retailers can deal with the numerous product varieties under the condition of limited shelf spaces, e.g., by allowing manufacturers to compete for shelf space.
Aichner, Thomas; Coletti, Paolo (2013). Customers’ online shopping preferences in mass customization. Journal of Direct, Data and Digital Marketing Practice, 15 (1), 20-35. https://doi.org/10.1057/dddmp.2013.34
Azim, Ahsan (2013). Effect of Dynamic Environment, Customers’ Tendency towards Promotion & New Experiences on Impulse Buying. Management and Administrative Sciences Review, 2 (3), 281-292. ISSN: 2308-1368
Bianchi-Aguiar, Teresa (2015). The Retail Shelf Space Allocation Problem: New Optimization Methods Applied to a Supermarket Chain. PhD thesis, Faculdade de Engenharia da Universidade do Porto. Available at https://repositorio-aberto.up.pt/bitstream/10216/80115/2/36364.pdf (Accessed 01 February 2023)
Brohan, M. (1999). Gotta have it. Internet Retailer, Available at www.Internetretailer.com
Burke, Raymond (2005). Retail Shoppability: A Measure of the World's Best Stores. In: R.E. George & P.E. Payton (Eds.), Future Retail Now: 40 of the World's Best Stores (pp. 206-219), Retail Industry Leaders Association
Cachon, Gérard. P.; Swinney, Robert (2011). The Value of Fast Fashion: Quick Response, Enhanced Design, and Strategic Consumer Behavior. Management Science, 57 (4), 778-795. http://dx.doi.org/10.1287/mnsc.1100.1303
Chen-Yu, Jessie H.; Seock, Yoo-Kyoung (2002). Adolescents’ clothing purchase motivations, information sources, and store selection criteria: a comparison of male/female and impulse/nonimpulse shoppers. Family and Consumer Sciences Research Journal, 31 (1), 50-77. https://doi.org/10.1177/1077727X02031001003
ElMaraghy, Hoda; Schuh, Günther; ElMaraghy, Waguih; Piller, Frank Thomas; Schönsleben, Paul; Tseng, Mitchell M.; Bernard, Alain (2013). Product variety management. CIRP Annals - Manufacturing Technology, 62 (2), 629-652. http://dx.doi.org/10.1016/j.cirp.2013.05.007
Hawkins, Del I.; Mothersbaugh, David L. (2010). Consumer behavior: building marketing strategy eleventh edition (eleventh edition). Boston: McGraw-Hill/Irwin.
Hekimoğlu, Mustafa; Sevim, Ismail; Aksezer, Çağlar; Durmuş, İpek (2019). Assortment optimization with log-linear demand: Application at a Turkish grocery store. Journal of Retailing and Consumer Services, 50, 199-214. https://doi.org/10.1016/j.jretconser.2019.04.007.
Hübner, Alexander; Kuhn, Heinrich (2011). Shelf and Inventory Management with Space-Elastic Demand. In: Hu, B., Morasch, K., Pickl, S., Siegle, M. (eds) Operations Research Proceedings 2010. Operations Research Proceedings (pp.405-410). Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-20009-0_64
Husnain, Mudassir; Rehman, Bushra; Syed, Fauzia & Akhtar, Waheed (2019). Personal and In-store Factors Influencing Impulse Buying Behavior among Generation Y Consumers of Small Cities. Business Perspectives and Research, 7 (1), 92-107. https://doi.org/10.1177/2278533718800625.
Martínez-de-Albéniz, Victor; Roels, Guillaume (2011). Competing for Shelf Space. Production and Operations Management, 20(1), 32-46. https://doi.org/10.1111/j.1937-5956.2010.01126.x.
Marx, Leslie; Shaffer, Greg (2010). Slotting Allowances and Scarce Shelf Space. Journal of Economics & Management Strategy, 19 (3), 575-603. https://doi.org/10.1111/j.1530-9134.2010.00262.x
Mohan, Geetha; Sivakumaran; Bharadhwaj; Sharma, Piyush (2012). Store environment's impact on variety seeking behavior. Journal of Retailing and Consumer Services, 19 (4), 419-428. https://doi.org/10.1016/j.jretconser.2012.04.003
Narulidea, Winda; Rusdiansyah, Ahmad; Gunani, Sri (2021). Retail Shelf Space Allocation in Supply Chain Contracts: A Literature Review. Proceedings of the Second Asia Pacific International Conference on Industrial Engineering and Operations Management Surakarta, Indonesia. Available at http://ieomsociety.org/proceedings/2021indonesia/31.pdf.
Octavia, Damayanti (2016). The Differences of Online and In-store Impulse Buying Behavior using Stimulus and Response Model. In: Striełkowski, W. (ed) Proceedings of the 3rd International Seminar and Conference on Learning Organization (isclo-15), Advances in Social Science, Education and Humanities Research, Atlantis Press. https://doi.org/10.1007/978-3-642-20009-0_64
Scavarda, Luiz Felipe; Schaffer, Jens; Schleich, H.; Reis, da Cunha Augusto; Fernandes, Tiago Carneiro (2008). Handling Product Variety and its Effects in Automotive Production. POMS 19th Annual Conference. La Jolla, California, U.S.A. Available at https://www.pomsmeetings.org/ConfPapers/008/008-0447.pdf (Accessed 1 February 2023)
Shaffer, Greg (2005). Slotting Allowances and Optimal Product Variety. The B.E. Journal of Economic Analysis & Policy, 5 (1), 1083-1083. https://doi.org/10.2202/1538-0637.1083.
Sharma, Piyush; Sivakumaran, Bharadhwaj; Marshall, Roger (2010). Impulse buying and Variety seeking: A trait-correlates perspective. Journal of Business Research, 63 (3), 276-283. http://dx.doi.org/10.1016/j.jbusres.2009.03.013
Slickdeals (2022). America’s Love for Impulse Spending is Going Strong in 2022. Available at https://money.slickdeals.net/surveys/slickdeals-impulse-spending-survey-2022/. (Accessed 01 February 2023)
Thonemann, Ulrich W.; Bradley, James R. (2002). The effect of product variety on supply chain performance. European Journal of Operational Research. 143 (3), 548-569. https://doi.org/10.1016/S0377-2217(01)00343-5
How to Cite
Copyright (c) 2023 Christina Schabasser
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.