Date of this Version

1-1-2012

Document Type

Journal Article

Publication Details

Accepted version

Cadeaux, J., & Dubelaar, C. (2012). Market environment, assortment policy, and performance of small retailers. Australasian Marketing Journal, 20(4), 250-259. ISSN: 1441-3582

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2012 HERDC submission. FoR code: 150506

© Copyright 2012 Australian and New Zealand Marketing Academy

ISSN

1441-3582

Abstract

This study surveys small retail pharmacies to examine the relationship between managers' perceptions of local market environments, their stated assortment policies, and their reported performance levels for a large product category. Managers report wider assortments when market diversity and market munificence are high. In turn, wider assortments have a positive effect on reported relative category sales and stock. In addition, market uncertainty has a direct negative effect on reported margins. This study controls for both store space as well as the potential direct performance effects of the local market environment faced by small retailers.

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This document has been peer reviewed.

 

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