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The interplay of brand-line assortment size and alignability in the sales of brand-lines and line-extensions of frequently purchased products

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  • Aurier, Philippe
  • Mejía, Victor D.

Abstract

Assortment size is paramount for brand-lines, due to its impact on performance. However, recent experimental research suggests an interaction with alignability: large nonalignable lines might be unfavorable, due to increased complexity and regrets. Using panel data, we confirm this negative interaction for brand-line sales. However, size has a strong positive effect which overcompensates for its negative interaction with nonalignability. Increasing it is always beneficial, even for nonalignable lines. In comparison, store assortment size demonstrates a negative impact on sales, due to the increase in category clutter it causes. We also study size and alignability effects in the case of a line-extension (new product in the same category). Here, the positive impact of line size is thwarted by established brand-line product cannibalization, a phenomenon positively influenced by brand-line strength and alignability. Thus, depending on brand-line strength and alignability strategies, a large size is not always favorable to line-extension sales.

Suggested Citation

  • Aurier, Philippe & Mejía, Victor D., 2020. "The interplay of brand-line assortment size and alignability in the sales of brand-lines and line-extensions of frequently purchased products," Journal of Business Research, Elsevier, vol. 117(C), pages 163-175.
    • Handle: RePEc:eee:jbrese:v:117:y:2020:i:c:p:163-175
    DOI: 10.1016/j.jbusres.2020.05.024
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    Cited by:

    1. Philippe Aurier & Victor D. Mejía, 2021. "The differing impacts of brand-line breadth and depth on customers’ repurchasing behavior of frequently purchased packaged goods," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1244-1266, November.
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    3. Mejía, Victor D. & Aurier, Philippe & Huaman-Ramirez, Richard, 2021. "Disentangling the respective impacts of assortment size and alignability on perceived assortment variety," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).

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