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Can product location really make a
difference?
The impact of the assortment structure, attentional scope, and
consumers’ t...
1/7/2016 | 2
Introduction
• Retailers’ assortment planning – impact on profit, CLV, customer experience (Mantrala et al., ...
1/7/2016 | 3
Research question
How the location of the selected product is influenced by the assortment structure,
consume...
1/7/2016 | 4
Conceptual Model (1)
Hypotheses
H1 Assortment structure influences the location
of the selected product
Evide...
1/7/2016 | 5
Conceptual Model (2)
Hypotheses
H4 Impulse buying tendency influences the
moderation effect of the assortment...
1/7/2016 | 6
Methodology
• Four conditions:
• Product location: choice from a planogram
• Questionnaire
- Scales: Costa an...
1/7/2016 | 7
Results
×
× ✓
✓
✓
1/7/2016 | 8
Results
(H3) Interaction effect between
the assortment structure and the
attentional scope was significant
•E...
1/7/2016 | 9
Conclusion
• Main and interaction effect between the assortment structure and the attentional
scope on the lo...
1/7/2016 | 10
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Can product location really make a difference?

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Master thesis research about the impact of the assortment structure, attentional scope, and consumers’ traits on the location of the selected product

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Can product location really make a difference?

  1. 1. Can product location really make a difference? The impact of the assortment structure, attentional scope, and consumers’ traits on the location of the selected product University of Groningen MSc Marketing Management Gréta Gonda July 1st, 2016
  2. 2. 1/7/2016 | 2 Introduction • Retailers’ assortment planning – impact on profit, CLV, customer experience (Mantrala et al., 2009)  Understand how consumers’ make decisions – location influences choice • Choice overload: too-much-choice-effect (Iyengar and Lepper, 2000; Kahn et al., 2014)  Position on the shelf can influence product choice • Previous research: „ideal shelf position” is inconsistent to date (Bar-Hillel et al., 2015) „Location, location, location” (Bar-Hillel, 2011)
  3. 3. 1/7/2016 | 3 Research question How the location of the selected product is influenced by the assortment structure, consumers’ goals and personality traits? • Attentional scope: shopping with a salient goal (narrow) vs. being ‘on the fly’(broad) (Fujita and Trope, 2014; Gable and Harmon-Jones, 2011) • Assortment structure: evidently equivalent vs. non-equivalent • Impulsiveness, openness to experience: responsiveness to environmental cues Choice requires deliberation (Bar-Hillel, 2015), primacy-recency effect (Ert and Fleischer, 2014) Minimizing mental and physical efforts (Christenfeld, 1995), center-stage heuristic (Valenzuela and Raghubir, 2009)
  4. 4. 1/7/2016 | 4 Conceptual Model (1) Hypotheses H1 Assortment structure influences the location of the selected product Evidently equivalent: Center preference Non-equivalent: Edge preference H2 Attentional scope influences the location of the selected product Broad attentional scope: Edge preference Narrow attentional scope: Center preference H3 The impact of the attentional scope on the location of the selected product is moderated by the structure of the assortment Broad attentional scope – non-equivalent: Edge preference Broad attentional scope – equivalent: Center preference Narrow attentional scope: Center preference (no effect)
  5. 5. 1/7/2016 | 5 Conceptual Model (2) Hypotheses H4 Impulse buying tendency influences the moderation effect of the assortment structure Broad attentional scope – non-equivalent assortment: High impulsiveness strengthens the edge preference H5 Openness to experience influences the moderation effect of the assortment structure Broad attentional scope – non-equivalent assortment: High openness to experience strengthens the edge preference
  6. 6. 1/7/2016 | 6 Methodology • Four conditions: • Product location: choice from a planogram • Questionnaire - Scales: Costa and McCrae (1992); Rook and Fisher (1995) • Two-, and three-way ANOVA Evidently equivalent assortment Non-equivalent assortment Narrow attentional scope Condition I Condition II Broad attentional scope Condition III Condition IV
  7. 7. 1/7/2016 | 7 Results × × ✓ ✓ ✓
  8. 8. 1/7/2016 | 8 Results (H3) Interaction effect between the assortment structure and the attentional scope was significant •Edge-preference in broad attentional scope condition, from non-equivalent assortment •Center-preference in broad attentional scope condition from evidently equivalent assortment; in narrow attentional scope condition
  9. 9. 1/7/2016 | 9 Conclusion • Main and interaction effect between the assortment structure and the attentional scope on the location of the selected product • Implications:  Retailers’ marketing strategy and assortment planning  Virtual grocery stores: location-based mobile marketing messages  Online shop: search results organization according to consumers’ goals • Limitations:  Drawbacks of a field experiment  Attentional scope condition was based on observation of entering/leaving Burger King  Decision-making is a complex concept – it can be influenced by other attributes
  10. 10. 1/7/2016 | 10 Thank you for your attention! Are there any questions?

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