Assortment Diversification in the Retail Industry : The Impact on Market-based and Accounting-based Performance
Type
conference paper
Date Issued
2011-06-09
Author(s)
Abstract
This study examines the performance implications of the world's leading retailers' assortment diversification behavior over thirteen years (from 1997 to 2009). Results show that assortment diversification into food and non-food retailing increases retailers' sales, while it decreases their profits. Thus, our findings indicate that retailers' decision to diversify across food and non-food assortments results in a trade-off between the objectives of market-based (i.e., sales) and accounting-based (i.e., profits) performance maximization. Moreover, beside the negative effect of assortment diversification on profits, we find suggestive evidence that retailers can decrease the volatility of their profits by diversifying into food and non-food assortments
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
INFORMS 2011 Proceedings
Publisher
INFORMS Marketing Science Conference
Publisher place
Hanover USA
Event Title
33rd Annual INFORMS Marketing Science Conference 2011
Event Location
Houston, Texas, USA
Event Date
09.-11.06.2011
Subject(s)
Division(s)
Eprints ID
72345