School Management System

ledge Management and Space Elasticity

Xavier Drèze Stephen J. Hoch Mary E. Purk Graduate nurture of Business The University of Chicago

January 1994 Revised July 1994 Last Revision November 1994

The authors would like to thank Dominicks Finer Foods, Information Resources Inc., and Market Metrics for their assistance and readiness of data. We also thank Bob Bycraft, Byung-Do Kim, Alan Montgomery and Keyyup Lee for their at angle in analyzing the data. Special thanks to Linus Schrage for modifying LINGO to handle bigger data sets. Xavier Drèze is Director of MIS and a doctoral student, Stephen J. Hoch is Robert P. Gwinn Professor of merchandising and Behavioral Science, and Mary E. Purk is Manager of the MicroMarketing Project, all at the University of Chicago.

Abstract

Shelf management is a difficult task in which rules of thumb rather than good theory and hard evidence tend to guide practice. Through a series of field experiments, we measured the effectiveness of two shelf management techniques: space-to-movement, where we customized shelf sets base on store-specific movement patterns; and product reorganization where we manipulated product localisation to facilitate cross-category merchandising or the ease of shopping.



We found humbled gains (4%) in sales and profits from increased customization of shelf sets and 5-6% changes payable to shelf reorganization. Using the field experiment data, we modeled the intrusion of shelf positioning and facing allocations on sales of somebody items. We found that location had a large impact on sales, whereas changes in the number of facings allocated to a brand had much slight impact as long as a token(prenominal) threshold (to avoid out-of ocelluss) was maintained.

Shelf Management and Space Elasticity

debut Retailers can increase profits either by decrease costs or increasing sales. The cost reduction opportunities ar of an operational nature --- they depend on efficient stock management, personnel management, and...If you want to get a full essay, ordain it on our website: Orderessay



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