Category Management and Coordination in Retail Assortment Planning in the Presence of Basket Shopping Consumers

@article{Cachon2007CategoryMA,
  title={Category Management and Coordination in Retail Assortment Planning in the Presence of Basket Shopping Consumers},
  author={G{\'e}rard P. Cachon and A. G{\"u}rhan K{\"o}k},
  journal={Management Science},
  year={2007},
  volume={53},
  pages={934-951}
}
This paper studies the assortment planning problem with multiple merchandise categories and basket shopping consumers (i.e., consumers who desire to purchase from multiple categories). We present a duopoly model in which retailers choose prices and variety level in each category and consumers make their store choice between retail stores and a no-purchase alternative based on their utilities from each category. The common practice of category management (CM) is an example of a decentralized… CONTINUE READING

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