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Retailers’ Merchandise Organization and Price Perceptions
Journal article   Open access   Peer reviewed

Retailers’ Merchandise Organization and Price Perceptions

Rajneesh Suri, Jane Zhen Cai, Kent B. Monroe and Mrugank V. Thakor
Journal of retailing, v 88(1), pp 168-179
Mar 2012
DOI: https://doi.org/10.1016/j.jretai.2011.02.005
url
https://spectrum.library.concordia.ca/974526/1/Merchandise_Organization_Suri_Cai_Monroe_Thakor_JR_2012.pdfView
Accepted (AM)Open Access (License Unspecified),  Open

Abstract

Information processing Information sort Motivation Price
[Display omitted] ► Price sort is beneficial for retailers with discounted (low-priced) offers. ► Brand sort helps retailers whose products are not discounted. ► Brand sorts overwhelm consumers. Retailers’ presentation of merchandise to consumers is often organized by brand or by price to facilitate comparison and processing of competitive information. While such organization of product information is presumed to assist consumer decision-making, we suggest that sorting of alternatives on brand names strain cognitive resources more than a price sort, leading to differences in sensitivity to prices for a target product accompanying these two sorts. We conduct three studies to examine this issue and find that sorting of alternatives interacts with consumers’ motivation and influences price perceptions. Our results add nuance to the findings from previous studies examining how assortment affects consumers’ price sensitivity, and suggest that retailers whose appeal is not primarily price-based could benefit by presenting merchandise information sorted by brand name so as to increase perceptions of quality and value.

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10 citations in Web of Science
12 citations in Scopus

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Domestic collaboration
International collaboration
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Business
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