22 September 2005
Consumers are more likely to return to shops when they have a wider choice of products, Monash research has found.
In a survey of people who had bought cut flowers at least once a month in the past two years, Professor Harmen Oppewal found wider choices were preferable even when smaller selections contained the buyer's favourite.
Professor Oppewal, from the Department of Marketing, surveyed 741 people using a questionnaire with eight pictures showing possible cut flower selections. Participants were asked to select their preferred bunch and to rate each on attributes including colour, flower type and price.
The results showed larger product selections or "assortments" had a dual effect on consumer behaviour, Professor Oppewal said.
"Firstly, larger assortments can help to draw customers and increase traffic through the store by building store image and providing a retail experience.
"Secondly, these assortments contribute to sales by making customers who have entered the store more likely to buy.
"Even average and slow-selling items in this study had a positive influence on consumer evaluation of the store's assortment."
Professor Oppewal said these findings indicated retailers could add value to their products by giving consumers more choice.
"Retailers have become increasingly aware of the costs of carrying larger assortments and have moved towards reducing the amount of choice they offer consumers, with the hope that it will go unnoticed and won't affect sales.
"Australia's two main supermarket chains are prime examples - both are moving towards restricting choice by promoting their own products and reducing stock of external brands.
"Even if assortment reductions go unnoticed and do not immediately impact negatively on sales, the longer-term effects on store image may be detrimental to the store," he said.
For further information contact Professor Harmen Oppewal on +61 3 9903 2360 or Ms Natasha Whalley, Media Communications on +61 3 9905 9201 or 0437 458 457.
| 
