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The Effect of Product Variety on Purchase Probability

Mark Heitmann, Andreas Herrmann & Christian Kaiser

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abstract Regarding the effect of product variety on purchase probability, there exist findings which demonstrate a positive effect of variety for small assortments and a negative effect of variety for large assortments. Despite these results, little evidence exists about the causal mechanism of this effect. We conduct a field study among German consumer electronics customers to investigate the previously proposed constructs of anticipated product utility, anticipated regret and evaluation costs. The results suggest that anticipated regret and evaluation costs play a powerful role in explaining the negative link between variety and purchase probability for high variety assortments. Anticipated product utility on the other hand serves to explain part of the positive causality for low variety assortments. The results obtained give rise to recommendations for the planning of assortments.
   
type journal paper
   
keywords
   
language English
kind of paper journal article
date of appearance 1-8-2007
journal Review of Managerial Science
publisher Springer (Berlin)
ISSN 1863-6683
ISSN (online) 1863-6691
DOI 10.1007/s11846-007-0006-6
volume of journal 1
number of issue 2
page(s) 111-131
review not reviewed
   
citation Heitmann, M., Herrmann, A., & Kaiser, C. (2007). The Effect of Product Variety on Purchase Probability. Review of Managerial Science, 1(2), 111-131, DOI:10.1007/s11846-007-0006-6.