Increasing product variety: Conflicts in shelf space allocation

Abstract

The increasing product variety trend prevalent in most industries today does not stop at retailers. Unfortunately, this trend is a mounting task due to limited shelf space. Based on a survey of 376 people, this research provides an insightful picture of the connection between product variety and impulse buying decisions. One of the study's main findings is that product variety offered by retailers is one of the main in-store factors driving impulse purchases. Since the survey results show the importance of product variety for retailers, the paper also presents some concepts as to how retailers can deal with the numerous product varieties under the condition of limited shelf spaces, e.g., by allowing manufacturers to compete for shelf space.