바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

  • P-ISSN1738-3110
  • E-ISSN2093-7717
  • SCOPUS, ESCI

Assortment Planning for Retail Buying, Retail Store Operations, and Firm Performance

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2018, v.16 no.8, pp.15-27
https://doi.org/https://doi.org/10.15722/jds.16.8.201808.15
Bahng, Youngjin
Kincade, Doris H.
Rogers, Farrokh Trevor

Abstract

Purpose - The purpose of the study is to examine the relationships among the following retail operations variables: retail store operations (i.e., store management, sales personnel, promotion of merchandise), success of assortment planning, firm performance (i.e., market share, overall competitive position, profitability, product quality, consumer satisfaction), and retail buyer's demographics and firm's characteristics. Research design, data, and methodology - After conducting a pilot test, the survey was conducted in Seoul, South Korea. With using the listwise deletion method, 378 usable data sets were analyzed. For data analysis, descriptive statistics, factor analysis, and Structural Equation Modeling (SEM) methods were employed. Results - As evidenced from the path diagram, the relationship between retail store operations and the success of assortment planning is strong and significant. Retail store operations affect firm performance, though at a weaker significance than it affects the success of assortment planning. The relationship between the success of assortment planning and firm performance, is the strongest relationship observed by this research. Conclusions - The findings of this empirical study contribute to the retail/fashion buying/management field by confirming (a) the importance of assortment planning for retail firm performance and (b) the role of store operations for successful assortment planning and firm performance for fashion retailers.

keywords
Assortment Planning, Retail Buying, Store Operations, Firm Performance, Fashion Retailers

Reference

1.

Amirani, S., & Gates, R. (1993). An attribute-anchored conjoint approach to measuring store image. International Journal of Retail and Distribution Management, 21(5), 30-39.

2.

Arbuthnot, J. J. (1997). Identifying ethical problems confronting small retail buyers during the merchandise buying process. Journal of Business Ethics, 16(7), 745-755.

3.

Bahng, Y. (2018). Consideration of assortment decision criteria: Men’s wear vs. women’s wear and male vs. female retail buyers. International Journal of Industrial Distribution and Business, 9(7), 7-18.

4.

Bahng, Y., & Kincade, D. H. (2014). Retail buyer segmentation based on the use of assortment decision factors, Journal of Retailing and Consumer Services, 21(4), 643-652.

5.

Berry, L. L., Seiders, K., & Grewal, D. (2002). Understanding service convenience. Journal of Marketing, 66(3), 1-17.

6.

Browne, M. W., & Cudeck, R. (1993). Alternative ways of assessing model fit. In K. A. Bollen, & J. S. Long (eds.), Testing Structural Equation Models (pp. 445-455). Newbury Park, CA: Sage Publications.

7.

Choi, S., Kim, P., & Lee, S. (2011). A research on private apparel brand’s product strategy in discounted stores, The International Journal of Industrial Distribution and Business, 2(2), 25-38.

8.

Clodfelter, R. (2008). Retail Buying from Basics to Fashions (3rd ed.). Albany, NY: Delmar Publishers Inc.

9.

Da Silva, R., Davies, G., & Naude, P. (2002). Assessing the influence of retail buyer variables on the buying decision-making process. European Journal of Marketing, 36(11), 1327-1343.

10.

Davies, G. (1994). The delisting of products by retail buyers. Journal of Marketing Management, 10(6), 473-493.

11.

Fader, P. S., & Hardie, B. G. S. (1996). Modeling consumer choice among SKUs. Journal of Marketing Research, 33(4), 442-452.

12.

Frings, G. S. (2005). Fashion from Concept to Consumer (8th ed.). Englewood Cliffs, NJ: Prentice Hall Career and Technology.

13.

Fiorito, S. S. (1990). Testing a portion of Sheth’s theory of merchandise buying behavior with small apparel firms. Entrepreneurship, Theory and Practice, 14(4), 19-34.

14.

Fiorito, S. S., & Fairhurst, A. E. (1993). Comparison of buyers’ job content in large and small retail firms. Clothing and Textiles Research Journal, 11(3), 8-15.

15.

Francis, S. K., & Brown, D. J. (1985). Retail buyers of apparel and appliances: A comparison. Clothing and Textiles Research Journal, 4(1), 1-8.

16.

Grewal, R., & Slotegraaf, R. J. (2007). Embeddedness of organizational capabilities. Decision Sciences, 38(3), 451-486.

17.

Grossman, R. J. (2000). Measuring up: Appropriate metrics help HR prove its worth. HR Magazine, 45(1), 28-35.

18.

Heckathorn, D. (1997). Respondent-driven sampling: A new approach to the study of hidden populations. Social Problems, 44(2), 174-199.

19.

Hirschman, E. C. (1981). An Exploratory Comparison of Decision Criteria Used by Retail Buyers. In W. R. Darden & R. F. Lusch (Ed.), Patronage Theory Conference. Lake Placid, NY: University of Oklahoma Press.

20.

Hsu, I. C., Lin, C. Y. Y., Lawler, J. J., & Wu. S. H. (2007). Toward a model of organizational human capital development: Preliminary evidence from Taiwan. Asia Pacific Business Review, 13(2), 251-275.

21.

Hu, L. T., & Bentler, P. M. (1995). Evaluating model fit. in R. H. Holye (ed.), Structural Equation Modeling: Concepts, Issues, and Applications (pp. 76-99). Thousand Oaks, CA: Sage.

22.

Kang, K., & Kincade, D. H. (2004). Clothing retail buyers’ color assortment decision factors. Paper presented at the meeting of the 1st International Conference on Clothing and Textiles, Daegu, Korea.

23.

Kang, S., Hwang, S., & Lee, J. (2014). Government- funded projects’ effects in revitalizing the urban commercial district for small and medium retail merchants. Journal of Distribution Science, 12(12), 101-106.

24.

Kannan, V. R., & Tan., K. C. (2006). Buyer-supplier relationships: The impact of supplier selection and buyer-supplier engagement on relationship and firm performance. International Journal of Physical Distribution and Logistics Management, 36(10), 755-775.

25.

Kincade, D. H., & Gibson, F. Y. (2010). Merchandising of Fashion Products. New Jersey: Pearson Education, Inc.

26.

Kincade, D. H., Gibson, F. Y., & Woodard, G. (2004). Merchandising Math: A Managerial Approach. New Jersey: Pearson Education, Inc.

27.

Kline, B., & Wagner, J. (1994). Information sources and retail buyer decision-making: The effect of product-specific buying experience. Journal of Retailing, 70(1), 75-88.

28.

Kok, A. G., Fisher, M. L., & Vaidyanathan, R. (2006). Assortment planning: Review of literature and industry practice. In Agrawal, N., & Smith, S. A. (ed.), Retail Supply Chain Management. New York, NY: Kluwer Publishers.

29.

Kok, A. G., & Fisher, M. L. (2007). Demand estimation and assortment optimization under substitution: Methodology and application. Operations Research, 55(6), 1001-1021.

30.

Krishnan, R., & Kothari, M. (2009). Involvement constructs and paths to persuasion models in decision making by a retail buyer. Journal of Marketing Management, 8(3), 56-73.

31.

Kunz, G. (2005). Merchandising: Theory, Principles, and Practice. NY: Fairchild.

32.

Malhotra, N. K. (1993). Marketing Research: An Applied Orientation. Englewood Cliffs, NJ: Simon & Schuster Company.

33.

Mantrala, M. K., Levy, M., Kahn, B. E., Fox, E. J., Gaidarev, P., Dankworth, B., & Shah, D. (2009). Why is assortment planning so difficult for retailers? A framework and research agenda. Journal of Retailing, 85(1), 71-83.

34.

Mazur, P. (1927). Principles of Organization Applied to Modern Retailing. NY: Harper and Bros.

35.

Neu, J., Graham, J. I., & Gilly, M. C. (1988). The influence of gender on behaviors and outcomes in a retail buyer-seller negotiation simulation. Journal of Retailing, 64(4), 427-51.

36.

Pettijohn, C. E., Pettijohn, L. S., & Taylor, A. J. (2007). Does salesperson perception of the importance of sales skills improve sales performance, customer orientation, job satisfaction, and organizational commitment, and reduce turnover?. Journal of Personal Selling and Sales Management, 27(1), 75-88.

37.

Sharma, A., & Stafford, T. F. (2000). The effect of retail atmospherics on customers’ perceptions of salespeople and customer persuasion: An empirical investigation. Journal of Business Research, 49(2), 183-191.

38.

Sirgy, M. J., Grewal, D., & Mangleburg, T. (2000). Retail environment, self-congruity, and retail patronage: An integrative model and a research agenda. Journal of Business Research, 49(2), 127-138.

39.

Song, J. (2010). Statistical Analysis Methods for Research by Using SPSS/AMOS. Seoul, Korea: 21Century Book.

40.

Stone, L. (1987). Retail Buyers Salability Judgements: A Comparison of Merchandise Categories. Unpublished master’s thesis, North Texas State University.

41.

Trochim, W. M. K. (2005). Research Methods: The Concise Knowledge Base. Cincinnati, OH: Atomic Dog Publishing.

42.

Vorhies, D. W., & Morgan, N. A. (2005). Benchmarking marketing capabilities for sustainable competitive advantage. Journal of Marketing, 69(1), 80-94.

43.

Wagner, J., Ettenson, R., & Parrish, J. (1989). Vendor selection among retail buyers: An analysis by merchandise division. Journal of Retailing, 65(1), 58-79.

44.

Williams, M. R., & Attaway, J. S. (1996). Exploring salespersons’ customer-orientation as a mediator of organizational culture’s influence on buyer-seller relationships. Journal of Personal Selling and Sales Management, 16(4), 33-52.

45.

Zou, S., & Cavusgil, T. S. (2002). The GMS: A broad conceptualization of global marketing strategy and its effect on firm performance. Journal of Marketing, 66(4), 40-56.

The Journal of Distribution Science