Which Products to Stock in a Retailing Environment

Which Products to Stock in a Retailing Environment -...

Info icon This preview shows pages 1–9. Sign up to view the full content.

Which Products to Stock in a Retailing Environment
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

What happens when product assortment is not optimized Walmart: 2008, removed 15% of the SKUs it carried. Sales declined significantly, and it was forced to roll back most of the changes According to a recent consumer survey, 1/3 of the time, consumers cannot find their the merchandize they clearly want and go home empty handed. The average pricediscount rate in the retailer industry is “40% off”.
Image of page 2
A new approach Assumption: “most of the time customers don’t buy products; they buy a bundle of attributes.” This approach is especially useful for retailers in the hard goods and grocery segments. Not suitable for fashion sensitive apparel segments Source: Fisher and Vaidyanathan (2012, Nov), “Which Products Should You Stock?”,
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 4
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 6
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Harvard Business Review . Product attributes • A product attribute is a characteristic that defines a particular product and will affect a consumer's purchase decision. Product attributes can be tangible (or physical in nature) or intangible (or not physical in nature). • Tangible attributes can include such product characteristics as size, color, weight, volume, smell, taste, touch, quantity, or material composition. • Intangible attributes may include such characteristics as brand, quality, beauty or aesthetics, and je ne sais quoi (an indefinable, elusive pleasing quality). • Identify which attributes are important to customers. – The tire retailer example • The important attributes for tires are brand , the mileage warranty , and size ....
View Full Document

  • Spring '15
  • He,Y
  • 15%, 40%, intangible attributes, Vaidyanathan

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern