Analysis of Product Assortment Using Power Law

DOI

Bibliographic Information

Other Title
  • 品揃え戦略のベき法則を用いた一考察
  • ―What Assortment is Optimal?―
  • ―なぜ品揃えは同じになるのか―

Abstract

<p>　Retail chain stores, such as supermarkets and convenience stores, typically select similar national brand product lineups, even though the product assortment on shop shelves is considered to be a significant factor in customers’ choices. To understand why real-world retailers often choose almost the same product assortment as their competitors choose, this study examines product assortment in retail stores using an analytical approach. We develop a mathematical model based on the application of the long tail sales model and power law; then, we determine the Nash and Stackelberg equilibria of the product assortment competition between two retailers. The analysis finds that the limited shop floor area and marginal profit of adding a product to the lineup are the main factors that result in the similar product assortment in retail stores. We then propose managerial implications derived from the analytical results.</p>

Journal

  • Produetion Management

    Produetion Management 28 (1), 27-36, 2021

    Japan Society for Production Management

Keywords

Details 詳細情報について

  • CRID
    1390579908258723840
  • DOI
    10.14846/seisankanri.28.127
  • ISSN
    21866120
    1341528X
  • Text Lang
    ja
  • Data Source
    • JaLC
  • Abstract License Flag
    Allowed

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