The interplay of brand-line assortment size and alignability in the sales of brand-lines and line-extensions of frequently purchased products

Philippe Aurier and Victor D. Mejía

Journal of Business Research, 2020, vol. 117, issue C, 163-175

Abstract: Assortment size is paramount for brand-lines, due to its impact on performance. However, recent experimental research suggests an interaction with alignability: large nonalignable lines might be unfavorable, due to increased complexity and regrets. Using panel data, we confirm this negative interaction for brand-line sales. However, size has a strong positive effect which overcompensates for its negative interaction with nonalignability. Increasing it is always beneficial, even for nonalignable lines. In comparison, store assortment size demonstrates a negative impact on sales, due to the increase in category clutter it causes. We also study size and alignability effects in the case of a line-extension (new product in the same category). Here, the positive impact of line size is thwarted by established brand-line product cannibalization, a phenomenon positively influenced by brand-line strength and alignability. Thus, depending on brand-line strength and alignability strategies, a large size is not always favorable to line-extension sales.

Keywords: Brand-line; Assortment size; Assortment alignability; Line-extension; New products; Market metrics (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:117:y:2020:i:c:p:163-175

DOI: 10.1016/j.jbusres.2020.05.024

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