Lecture 7 Flashcards
1
Q
Breadth
A
Number of (sub) categories
- Hypermarket
2
Q
Depth
A
Number of different SKUs within a (sub) category
- Category killer
3
Q
Disadvantages larger assortments for consumers
A
- Lower choice precision
- Lower satisfaction with the decision
- Lower satisfaction with the chosen product
- More regret
- More procrastination
4
Q
Attraction stage
A
Draw consumers to the store/website
5
Q
Conversion stage
A
Convince consumers to buy
6
Q
Need for online assortment optimization
A
- Choice overload
- There are variable cost per product such as those for content generation
- Space in the distribution centers is not infinite
- More sales dispersion increases inventory costs
- Higher sales concentration could improve margin conditions
7
Q
Reasons to display products in a store
A
- Earn
- Provide expertise
- Overcome the limitations of the digital world
- Inspire (to aspire)
- Learn
8
Q
Process related
A
- Stimulation and shopping fun
- Positive anticipation of choosing
- Freedom of choosing
- Possibility of learning about the product category
- Drawing consumers to the website/shelf
9
Q
Choice related
A
- Increases the chance of finding the ideal product
- Increases the chance of finding multiple products in case of multiple buyers/users
- Possibility of variety seeking
- Flexibility in case of uncertain preferences
