scholarly journals Assortment Rotation and the Value of Concealment

2020 ◽  
Author(s):  
Kris Johnson Ferreira ◽  
Joel Goh
Keyword(s):  
Competitive Advantage ◽  
Operations Management ◽  
Structural Difference ◽  
Product Categories ◽  
Multiple Products ◽  
Online Retailers ◽  
Relative Product ◽  
Brick And Mortar ◽  
Context Dependent ◽  
General Conditions

Assortment rotation—the retailing practice of changing the assortment of products offered to customers—has recently been used as a competitive advantage for both brick-and-mortar and online retailers. We focus on product categories where consumers may purchase multiple products during a season and investigate a new reason why frequent assortment rotations can be valuable to a retailer. Namely, by distributing its seasonal catalog of products over multiple assortments rotated throughout the season, as opposed to selling all products in a single, fixed assortment, the retailer effectively conceals a portion of its full product catalog from consumers, injecting uncertainty into the consumer’s relative product valuations. Rationally acting consumers may respond to this structural difference by purchasing more products, thereby generating additional sales for the retailer. We refer to this phenomenon as the value of concealment and show that the retailer enjoys a positive and significant value of concealment under quite general conditions. However, we show that when consumers are forward looking, the value of concealment is context dependent. We present insights and discuss intuition regarding which product categories likely lead to a positive versus negative value of concealment. This paper was accepted by Vishal Gaur, operations management.

Product Choice Strategy for Online Retailers

2011 ◽  
pp. 220-238
Author(s):  
Ruiliang Yan ◽  
Amit Bhatnagar
Keyword(s):  
Product Category ◽  
Product Categories ◽  
Online Retailers ◽  
Two Factors ◽  
Brick And Mortar ◽  
Online Channel ◽  
Online Stores ◽  
Set Up ◽  
The Right ◽  
The Web

An important strategic issue for managers planning to set up online stores is the choice of product categories to retail. While the “right” product category would depend on a number of factors, here we focus on the following two factors: compatibility of the product with the online channel, and the competition between the traditional brick and mortar channel and the online channel. This is to acknowledge two well-known facts: Certain products are more suitable for selling through the Web than through other channels; and an online retailer competes with not only other online retailers, but also traditional brick and mortar retailers. To determine the right product category, we develop a game theoretical model that allows for competition between the retailers. We study both Stackelberg and Bertrand competition models, as these two models capture the essence of different types of competition on the Web. Based on our results, we propose that, under all types of competition, the optimal product is one that is only moderately compatible with the Internet.

scholarly journals Long-Term Discounting Frameworks: Insights from Multiple Experiments

2020 ◽  
pp. 84-100
Author(s):  
H. R. Ganesh ◽  
P. S. Aithal ◽  
P. Kirubadevi
Keyword(s):  
Competitive Advantage ◽  
Online Retailing ◽  
Sales Promotions ◽  
Online Retailers ◽  
Brick And Mortar ◽  
Consumer Perspective ◽  
Key Drivers ◽  
Online Stores ◽  
The Impact

Ever since the online retailing format has emerged in India, consumers now have wider options available for them to buy a product at a discounted price and notably, as online stores in India are following the product discounting as one of the key drivers for consumer acquisition, consumers’ perspective towards discount at brick-and-mortar store has changed.This change in consumers’ perspective has put the majority of brick-and-mortar retailers in India into a quandary and they are losing out their market share slowly to online retailers. In this research which is based on recommendations of empirical research previously carried out on the impact of changes in retailer and consumer perspective towards discount post emergence of online stores in India, we have carried out multiple experiments on multiple long-term discounting frameworks to investigate and recommend brick-and-mortar retailers on ideal(a) frameworks, (b) duration, (c) types, (d) assortment coverage, and (e) advertising techniques for long-term discounting strategies to enable brick-and-mortar retailers to design appropriate sales promotions to gain a competitive advantage over online retailing on the discount component.

Online Customer Experience

2014 ◽  
pp. 129-141 ◽  
Author(s):  
Emel Kursunluoglu Yarimoglu
Keyword(s):  
Customer Satisfaction ◽  
Competitive Advantage ◽  
Customer Experience ◽  
Sustainable Competitive Advantage ◽  
Online Retailer ◽  
Online Retailers ◽  
Brick And Mortar ◽  
Customer Satisfaction And Loyalty

Internet has become one of the strongest components of commerce. The number of online customers continues to rise day to day and satisfying them is a vital issue in order for online companies to survive. Customer experience is important in e-commerce as well as in traditional commerce. Online customer experience is a unique subject that should be analyzed for gaining sustainable competitive advantage in e-commerce, since there are more intangible elements for online retailers than brick and mortar retailers. The main aim of this chapter is to identify the formation of online customer experience and to show the importance of online customer experience. If online customer experience is created by online retailer, customer satisfaction and loyalty can be developed later. For such reasons, factors that affect online customer experience and designing a Website for creating online customer experience are discussed in this chapter.

scholarly journals An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110241
Author(s):  
Ya-Ling Chiu ◽  
Yuan-Teng Hsu ◽  
Xiaoyu Mao ◽  
Jying-Nan Wang
Keyword(s):  
Empirical Study ◽  
Third Party ◽  
Purchasing Decisions ◽  
Product Categories ◽  
Price Discounts ◽  
Online Retailers ◽  
Holiday Season ◽  
Over Time

When online retailers allow third-party sellers to place certain products on their platforms, these sellers become not only collaborators but also competitors. The purpose of this study is to compare the differences in price discounts between Third-Party Marketplace (3PM) sellers and Fulfilled by Walmart (FBW) sellers on Walmart.com over time. The results, based on data collected in the form of the daily prices of 54,162 products offered by Walmart during the holiday season, show that the average discount for 3PM sellers is significantly lower than that for FBW sellers. In addition, across product categories, FBW sellers had significantly higher average discounts than 3PM sellers in the electronics, housewares, and toys categories. Furthermore, the level of discount began to increase in early November and peaked around Christmas. Our findings may help retailers manage their dealings with these third-party sellers while also helping consumers to optimize their purchasing decisions.

The Effects of Menu Costs on Retail Performance: Evidence from Adoption of the Electronic Shelf Label Technology

2020 ◽  
Author(s):  
Ioannis Stamatopoulos ◽  
Achal Bassamboo ◽  
Antonio Moreno
Keyword(s):  
Shelf Life ◽  
Operations Management ◽  
Cost Savings ◽  
Labor Cost ◽  
Price Adjustment ◽  
Menu Costs ◽  
Price Changes ◽  
Product Categories ◽  
Material Costs ◽  
Gross Margins

We use the adoption of electronic shelf labels (ESLs) by an international grocery retailer in 2015 to identify the effects of physical menu costs (i.e., labor and material costs of price adjustment) on retail performance. We find that the installation of ESLs increased gross margins substantially, which implies profit gains that go far beyond labor cost savings. We also explore the mechanism behind this effect. We find that the lift in gross margins was associated with an increase in quantity sold and a decrease in price per unit sold, and that the lift primarily came from low-shelf life product categories. Moreover, we find that more and smaller price changes occurred with ESLs. These additional price changes were mostly price decreases, and they were dispersed in time. Our findings are consistent with reductions in both variable and fixed menu costs (i.e., both costs that scale with the number of products affected and costs that do not). This paper was accepted by Vishal Gaur, operations management.

scholarly journals Implementation of Mass Customization for competitive advantage in Indian industries: a structural equation model

2021 ◽  
Author(s):  
Piu Jain ◽  
Suresh Garg ◽  
Gayatri Kansal
Keyword(s):  
Competitive Advantage ◽  
Mass Customization ◽  
Operations Management ◽  
Structural Equation ◽  
Analytical Framework ◽  
Equation Model ◽  
Market Demand ◽  
Indian Origin ◽  
Using Data ◽  
Indian Industries

Abstract The enduring fluctuations in market demand, exemplified by exceedingly unpredictable customer requirements have given rise to Mass customization, which is acquiring increasing prominence in production and operations management. Fostering on the foundation laid by erstwhile researcher Hart[1], who developed an analytical framework of four pillars of mass customization for organizations, the objectives of this research are to obtain additional discernments on the nature of linkage between the four pillars and MC, in addition to their impact on competitive advantage. The current work is an attempt to explore the mass customization ability of manufacturing organizations of Indian origin and its impact on organisational performance and to propose a comprehensive assessment and decision-making model for manufacturers to implement mass customization for competitive benefits. Literature support is expanded and validated using data collected through survey conducted among managers of various divisions of organization of Indian origin. The final sample contains 276 usable observations. Data analysis was performed expending structural equation modelling(Amos Graphics).

Do wine buyers behave differently in brick and mortar vs online stores?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marguerite Higuet ◽  
Hervé Remaud
Keyword(s):  
Customer Loyalty ◽  
Design Methodology ◽  
Double Jeopardy ◽  
Grape Variety ◽  
Content Type ◽  
Product Categories ◽  
Brick And Mortar ◽  
Period Data ◽  
Online Stores ◽  
One Year

PurposeTo measure the extent to which wine buyers behave differently when purchasing wine online vs in two brick and mortar stores. The article aims to extend the use of the Double Jeopardy principle and empirical-based methodology to the wine category in a European retailing context.Design/methodology/approachCustomer loyalty data of two brick and mortar stores and the website orders of a Belgian retailer have been gathered for a one-year period. Data have been analysed based on three specific wine attributes: country of origin, grape variety and brand. Double Jeopardy measurements have been calculated for each of these attributes.FindingsThis study enlarges the scope of use of the Dirichlet principles. All three hypotheses derived from the Double Jeopardy patterns across all attributes are confirmed. From the perspective of these principles, we demonstrated that wine buyers do not behave differently in brick and mortar vs online stores.Originality/valueVery few studies have analysed and understood wine buyers' behaviour using actual purchasing data from retail stores, and none have been released comparing online and brick and mortar stores owned by the same retail brand. From that perspective, our study demystifies the way people really buy, and confirms what has been found in other product categories.

Can offline–online congruence explain online loyalty in electronic commerce?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Eugenia Ruiz-Molina ◽  
Miguel-Ángel Gómez-Borja ◽  
Alejandro Mollá-Descals
Keyword(s):  
Online Survey ◽  
Customer Relationship ◽  
Exploratory Research ◽  
Online Store ◽  
Content Type ◽  
Product Categories ◽  
Multichannel Retailing ◽  
Brick And Mortar ◽  
Online Shoppers ◽  
Online Stores

PurposeOne key issue to be addressed in multichannel retailing strategies has to do with ensuring the consistency of the retailer offerings between the brick-and-mortar and the online stores to offer their customers a seamless experience. This study assesses whether perceived congruence may be relevant to identify segments of heterogeneous based on their online loyalty levels as well as other constructs and variables related to the customer relationship with the retailer for two different product categories.Design/methodology/approachFrom the responses of apparel and electronics multichannel shoppers to an online survey, a CHAID algorithm was performed to identify the most relevant congruence attribute(s) perceived by customers for predicting their loyalty levels toward the online store.FindingsThe results have allowed the identification of five segments of online shoppers, both for apparel and for electronics retailing, so that customers showing the highest scores in all congruence attributes also showed a higher loyalty toward the online store.Research limitations/implicationsThis study presents a first insight into the link between perceived congruence and online loyalty in retailing using a CHAID segmentation-based approach by differentiating various dimensions of perceived congruence for two product categories.Practical implicationsThe results obtained allow for inferring a series of strategies and actions that retailers can adopt for improving perceived congruence between physical and online stores along with a series of dimensions, and ultimately, increase online loyalty.Originality/valueAs the interest of the literature on perceived congruence between offline and online stores is relatively recent, this exploratory research contributes to shedding light on the implications of specific congruence dimensions between the offline and the online store in terms of consumer online loyalty in all multicategory setting.

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