HC 6 – Retail Marketing 17-10-216
Literature contradicting each other
- Assortment = number of items carried by a retailer
o Width of assortment: the number of categories you offer (e.g. Aldi,
can also buy clothes and computers. So very breath)
o Depth of assortment: a lot of choices in the category (the more the
deeper)
General assumption more = better.
- Marketing theory
o Segmented market
o Variety seeking
- Psychological theory
o Intrinsic motivation and life satisfaction
o Perceived behavioral control
Barry Swchwartz
- Official dogma = more choice, more freedom, more satisfaction
- Secret to happiness = lower expectations
- Why more choice is bad:
1. Could have been better (alternative choice)
2. Opportunity costs
3. Escalations of expectations
- Choice overload make people miserable:
1. Regret & anticipated regret (al the alternatives)
2. Opportunity costs (standards go up, less satisfied)
3. Escalation of expectations (less satisfied with result)
4. Self-blame (don’t meet high standards)
- Pareto improving move = we luckier with less choice, give the third country
more choice.
Attraction vs. conversion (example)
- Variety of jams
- See CP.
- Attraction people stop and watch the jam assortment
- Conversion actually buy
Findings: Extent assortment, larger % stops, but comes to conversion less %.
Briesch, et al. (2009)
- Assortment is more important price level & convenience right
assortment is important to have a lot of customer in your store
- If you have enough numbers of brand = positive (breath), but many SKU’s
per brand, then is negative (To depth)
- Effect of assortment show more heterogeneity differs per situation and
makes it very complex to pick the right assortment (e.g. AH unique
assortment per location, so adapt local situation)
Two sides of the assortment medal
- Attraction (+)
- Conversion (-)
The ‘more is better’ assumption is criticized
- Too much lower purchase + lower satisfaction
Literature contradicting each other
- Assortment = number of items carried by a retailer
o Width of assortment: the number of categories you offer (e.g. Aldi,
can also buy clothes and computers. So very breath)
o Depth of assortment: a lot of choices in the category (the more the
deeper)
General assumption more = better.
- Marketing theory
o Segmented market
o Variety seeking
- Psychological theory
o Intrinsic motivation and life satisfaction
o Perceived behavioral control
Barry Swchwartz
- Official dogma = more choice, more freedom, more satisfaction
- Secret to happiness = lower expectations
- Why more choice is bad:
1. Could have been better (alternative choice)
2. Opportunity costs
3. Escalations of expectations
- Choice overload make people miserable:
1. Regret & anticipated regret (al the alternatives)
2. Opportunity costs (standards go up, less satisfied)
3. Escalation of expectations (less satisfied with result)
4. Self-blame (don’t meet high standards)
- Pareto improving move = we luckier with less choice, give the third country
more choice.
Attraction vs. conversion (example)
- Variety of jams
- See CP.
- Attraction people stop and watch the jam assortment
- Conversion actually buy
Findings: Extent assortment, larger % stops, but comes to conversion less %.
Briesch, et al. (2009)
- Assortment is more important price level & convenience right
assortment is important to have a lot of customer in your store
- If you have enough numbers of brand = positive (breath), but many SKU’s
per brand, then is negative (To depth)
- Effect of assortment show more heterogeneity differs per situation and
makes it very complex to pick the right assortment (e.g. AH unique
assortment per location, so adapt local situation)
Two sides of the assortment medal
- Attraction (+)
- Conversion (-)
The ‘more is better’ assumption is criticized
- Too much lower purchase + lower satisfaction
