Skip to main navigation Skip to search Skip to main content

A multi-category demand model incorporating inter-product proximity

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

    Research output: Contribution to journal › Article › peer-review

    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.

    Original languageEnglish
    Pages (from-to)152-162
    Number of pages11
    JournalJournal of Business Research
    Volume124
    DOIs
    StatePublished - Jan 2021

    Keywords

    • Multi-Category Demand Models
    • Purchase Incidence Decisions
    • Retail Shelf Effects
    • Store Layouts

    Fingerprint

    Dive into the research topics of 'A multi-category demand model incorporating inter-product proximity'. Together they form a unique fingerprint.

    Cite this