Product Differentiation, Store Differentiation, and Assortment Depth

被引:27
|
作者
Hamilton, Stephen F. [1 ]
Richards, Timothy J. [2 ]
机构
[1] Calif Polytech State Univ San Luis Obispo, Dept Econ, Orfalea Coll Business, San Luis Obispo, CA 93407 USA
[2] Arizona State Univ, Morrison Sch Management & Agribusiness, Mesa, AZ 85212 USA
关键词
product differentiation; multiproduct firms; MONOPOLISTIC COMPETITION; GOODS; MODEL;
D O I
10.1287/mnsc.1090.1032
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
This paper considers the relationship between product differentiation, store differentiation, and the equilibrium depth of the product assortment. We find an inverted U-shaped relationship between product differentiation and assortment depth, with the depth of the assortment rising at first and then falling with the degree of product differentiation. For product categories that consist of relatively nondifferentiatied variants, a positive relationship arises between assortment depth and category sales, whereas a negative relationship emerges between assortment depth and sales in categories with more differentiated variants. Both the extent and manner in which store differentiation changes has important implications for assortment depth. If retailer market power is augmented following the closure of rival retailers, product assortments become deeper; however, if retailers gain market power by investing in store attributes that facilitate customer loyalty, product assortments become shallower.
引用
收藏
页码:1368 / 1376
页数:9
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