Understanding the Impact of Assortment Reduction

Due to increased competition of "category killers" such as Wal-Mart and Aldi, traditional grocery retailers such as Kroger (US), Edeka (Germany) and Albert Heijn (The Netherlands), are forced to implement cost saving programs. One way to achieve cost savings is cutting assortment, that is reducing the number of items offered within a category. However, retailers fear that there may be a downside to reducing assortment as well: complaining customers, lower assortment satisfaction and lower category sales. Based on survey research, a laboratory experiment and a natural experiment Laurens Sloot will address several research questions related to the topic of assortment reduction: What is the effect of assortment reduction on assortment evaluation, assortment satisfaction and intended store choice? How do consumers react (complaining, store choice) when a preferred brand is delisted? What variables may explain these consumer reactions? What are the short and long term effects of assortment reduction? Do consumer reactions differ between item and brand reductions?