Effect of Product Assortment Changes on Customer Retention

This research investigates the impact of large-scale, multiple category assortment reductions on sales at both the store level and the category level simultaneously. Using data provided by an online grocer, we find that the reduction in assortment decreases both shopping frequency and purchase quantity, results in contrast to all of the recent studies on assortment reductions (FMI 1993, Dreze, Hoch, and Purk 1994; Broniarczyk, Hoyer, and McAlister 1998; Boatwright and Nunes 2001, 2004). In addition, we also find that the impact of the assortment cut varies widely by category, with less-frequently purchased categories more adversely affected, suggesting that managers who target cuts in select categories may moderate the overall loss in sales.



Citation:

Kristin Diehl, Cait Poynor, and Peter Boatwright (2005) ,"Effect of Product Assortment Changes on Customer Retention", in E - European Advances in Consumer Research Volume 7, eds. Karin M. Ekstrom and Helene Brembeck, Goteborg, Sweden : Association for Consumer Research, Pages: 605-605.

Authors

Kristin Diehl, University of South Carolina
Cait Poynor, University of South Carolina
Peter Boatwright, Carnegie Mellon University



Volume

E - European Advances in Consumer Research Volume 7 | 2005



Share Proceeding

Featured papers

See More

Featured

Show Me More! Powerlessness Drives Variety Seeking

Wangshuai Wang, Shanghai University of International Business and Economics
Raj Raghunathan, University of Texas at Austin, USA
Dinesh Gauri, University of Arkansas, USA

Read More

Featured

O1. Choice, Rejection, and Context Effects

Shih-Chieh Chuang, National Chung Cheng University
Yin-Hui Cheng, National Taichung University of Education

Read More

Featured

The Ex-Money Effect: When and Why People Feel Connected to Outcomes that Involve Money They Previously Had

Charis Li, University of Florida, USA
Yanping Tu, University of Florida, USA

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.