A multi-category demand model incorporating inter-product proximity

Yu Ma, Seetharaman, P.B. (Seethu) and Vishal Singh

Journal of Business Research, 2021, vol. 124, issue C, 152-162

Abstract: Grocery stores typically contain hundreds of product categories. Physically arranging these product categories among a limited number of store aisles and shelves is a challenging task. We propose a multi-category demand model that considers physical locations of product categories to be important determinants of consumers’ purchase incidence decisions in these categories at the store, and examine two issues: (1) to what extent does store layout influence shopping basket decisions? (2) how should the store layout be re-designed to achieve optimal profit? Our analyses suggest the retailer can significantly increase store profitability by re-organizing retail layout configurations.

Keywords: Store Layouts; Retail Shelf Effects; Multi-Category Demand Models; Purchase Incidence Decisions (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S014829632030789X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:124:y:2021:i:c:p:152-162

DOI: 10.1016/j.jbusres.2020.11.036

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().