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Article
Publication date: 14 September 2015

Norm O'Reilly, George Foster, Ryan Murray and Carlos Shimizu

– The purchase drivers of merchandise sales rank in professional sport are examined at both a conceptual and an empirical level. The paper aims to discuss these issues.

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Abstract

Purpose

The purchase drivers of merchandise sales rank in professional sport are examined at both a conceptual and an empirical level. The paper aims to discuss these issues.

Design/methodology/approach

A database was constructed for all 30 clubs in the National Hockey League based on a conceptual model of relevant variables. Both public and private data sources were accessed, covering an extensive 12-season period (1999-2011), including the 2004-2005 lockout when the season was cancelled. Principal-components analysis was used to reduce the number of variables for regression analysis to distinguish relatedness and to gauge the influence of those variables on merchandise sales rank.

Findings

The results reveal that six club-based factors impact merchandise sales rank: Overall Fan Satisfaction, Media Exposure, On-Field Performance, Strength of a Club’s Brand, Local Market Dynamics, and Fan Capacity to Pay. These six categories of purchase drivers form a strong predictive model of merchandise sales rank in the National Hockey League.

Research limitations/implications

The resulting model could be extended in future research by adding extra categories to the conceptual framework and by developing alternative or better measures of the variables the authors use. It could also be tested with other sales data as the dependent variable since the study was limited to ranking data on merchandise data for the National Hockey League clubs for each year. Future research could use the actual merchandise dollars for each club in a league to test the model. A further extension would be to model subparts of merchandise (such as jersey sales, impacts of brand changes, etc.). A similar area of future research would be to look at the role of individual athletes as opposed to clubs in driving merchandise sales rank or volume.

Practical implications

For managers in professional sport, the results suggest that there are steps that can be taken to improve merchandise sales rank (and, by extension, merchandise sales volume). Practitioners can develop and follow strategies in this regard. Results also suggest that practitioners should put the achievement of high Regional Television Ratings – the strongest influencing variable on merchandise sales rank – as a priority.

Social implications

The results confirm that brand is important when attempting to increase merchandise sales rank. Club managers need to be cognizant of their brand and its impact on merchandising in all decisions.

Originality/value

The business of professional sport is evolving globally with new sources of revenue, including merchandising increasing in prominence. This research explores the drivers of merchandise sales rank in professional sport and provide direction on key antecedents. The study proposes and tests a conceptual model.

Details

Sport, Business and Management: An International Journal, vol. 5 no. 4
Type: Research Article
ISSN: 2042-678X

Keywords

Case study
Publication date: 20 January 2017

Robert D. Dewar

Describes the winning formula at Neiman Marcus that has made it the No. 1 luxury retailer in the United States in terms of sales per square foot and profitability. Highlights…

Abstract

Describes the winning formula at Neiman Marcus that has made it the No. 1 luxury retailer in the United States in terms of sales per square foot and profitability. Highlights Neiman Marcus' efforts to define who its customers are and are not and to achieve superior focus on its customers by aligning location, price, service, and merchandise to fulfill these customers' every need. Describes ways in which Neiman Marcus prevents typical silo behavior between merchandising and selling and how it ensures that the right merchandise gets to the right customer, despite the challenge of doing this in 36 micromarkets.

To show how a company integrates two strong high-performance functions—merchandising and sales—to get the right merchandise to each customer in more than 30 diverse selling locations while consistently providing exceptional customer service.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

Article
Publication date: 19 July 2022

Diego Gutierrez, James J. Zboja, Kristie Briggs and Kathleen M. Sheehan

The primary purpose of this study is to examine how fan attendance at team special events and player appearances impact fan consumption (as measured by merchandise sales)…

Abstract

Purpose

The primary purpose of this study is to examine how fan attendance at team special events and player appearances impact fan consumption (as measured by merchandise sales). Insights obtained could shed light on opportunities for professional soccer teams to expand revenues through enhanced fan consumption of goods and services.

Design/methodology/approach

A sample of 499 season ticket holders were used to assess fan consumption by measuring merchandise sales. Ordinary least squares (OLS) regressions were run for merchandise sales as the dependent variable of fan consumption. The control variables were age, gender (male = 1, 0 otherwise), and whether an individual has children.

Findings

The key independent variables of attending special events and fan–player bonding were both found to have a statistically significant impact on merchandise sales. Results show that each additional special event attended generates up to $33.71 in merchandise sales for the club. Similarly, each fan–player bonding experience attended also has a direct impact, increasing merchandise consumption by $23.00.

Social implications

The results of this study provide insights that can help fan consumption grow within the professional United States soccer industry and better allow team managers to make decisions about the possible benefits of holding more special events and fan–player bonding experiences. The findings also confirm the impact personal relationships with fans can have on the bottom line of sport franchises.

Originality/value

Though this study adds to the body of literature by expanding previous work on fan consumption, there are limited studies on the social aspects of consumption which are examined and analyzed within this study, particularly of note is the study of merchandise sales as proxy for fan consumption.

Details

Sport, Business and Management: An International Journal, vol. 13 no. 2
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 7 March 2016

Aradhana Gandhi and Ravi Shankar

The purpose of this paper is to use strategic resource management (SRM) model and data envelopment analysis (DEA) for benchmarking Indian retailers. The study ascertains, how a…

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Abstract

Purpose

The purpose of this paper is to use strategic resource management (SRM) model and data envelopment analysis (DEA) for benchmarking Indian retailers. The study ascertains, how a retailer can benchmark its performance at company level, global level, store level and finally at merchandise category level using diverse strategies for inventory, space and people.

Design/methodology/approach

The paper aims to use SRM model, for evaluating and comparing the performance of two generalized retailers Shoppers Stop and Trent. These two generalized retailers are benchmarked with another best-in-class retailer, Wal-Mart using the SRM model. The benchmarking exercise brings out improvement directions for the Indian retailers. In the next part of the study, economic efficiencies of 11 generalized retailers are ascertained using DEA model. Finally, a study is conducted to understand, how SRM model can be used as a planning tool for deciding alternative inventory, space and people strategies at store level as well as at merchandise category level.

Findings

Based on the data for the year 2011-2012, Trent’s performance is comparatively better than Shoppers Stop. The paper offers suggestion to improve its performance. Next, it was found that the performance of Wal-Mart is superior to the two Indian retailers. The study offers direction to the two retailers to devise appropriate strategies to improve their performance. The study further ascertains the relative efficiencies of 11 generalized retailers in the country. Finally, an illustration of how a retailer can use the SRM model as a tool for planning alternative strategy for inventory, space and people in a particular merchandise category is offered using data from a retail firm. The study has used “Jeans” and “Toys” as two categories to demonstrate this concept.

Practical implications

The examples considered in this paper can be used by practicing retailers to plan and benchmark their performance.

Originality/value

The study proposes a method, by which retailers can examine ways to plan and improve their operations and profitability by using the SRM and DEA model. The study is therefore relevant to practicing retailers as well as academicians.

Details

Benchmarking: An International Journal, vol. 23 no. 2
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 8 August 2019

Changju Kim and Katsuyoshi Takashima

This paper aims to examine empirically whether and under what organisational design conditions retailers can benefit from private label (PL) merchandising improvement.

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Abstract

Purpose

This paper aims to examine empirically whether and under what organisational design conditions retailers can benefit from private label (PL) merchandising improvement.

Design/methodology/approach

The study tests hypotheses using a structural equation model and data obtained from general merchandise managers at 190 supermarket retailers in Japan.

Findings

The results reveal that both centralised merchandising authority and store cooperation between merchandising and store divisions motivate PL merchandising improvement, which strengthens PL competitiveness. In addition, outcome-based merchandiser control strengthens the positive relationship between store cooperation and PL merchandising improvement. However, regarding centralised merchandising authority, it is found that outcome-based control had no significant moderating effect.

Research limitations/implications

To generalise the findings, it may be desirable to reflect data from store divisions for at least two constructs of interdepartmental structure and coordination. Also, it will remain a challenge to produce objective financial outcomes, such as sales, profits or market share, of PL merchandise to empirically test PL contributions to a retail store or company.

Practical implications

It is important for retail managers to understand their merchandisers’ efforts and behaviours to continuously improve PL merchandising activities. It is strongly recommended that retail managers continue to find ways to motivate their merchandisers.

Originality/value

Drawing on the philosophy of continuous improvement, this study suggests a novel approach to retail merchandising management that investigates how organisational design can influence better PL merchandising. To highlight the growing role of retail merchandisers, often ignored in the PL literature, this study advances this knowledge about the organisational design–strategic behaviour linkage by empirically testing interactions between different aspects of retail organisation design.

Article
Publication date: 13 July 2010

Ui‐Jeen Yu and Grace I. Kunz

The purpose of this study is to examine the ability of supply chain merchandise replenishment strategies to minimize merchandise plan errors when assortments are diverse.

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Abstract

Purpose

The purpose of this study is to examine the ability of supply chain merchandise replenishment strategies to minimize merchandise plan errors when assortments are diverse.

Design/methodology/approach

Sourcing Simulator 2.1, a computer simulation of the merchandising process, was used. Sourcing Simulator generated a total data set of 4,320 and determined financial outcomes of the merchandising processes based on multiple scenario inputs.

Findings

The impact of supply chain merchandise replenishment strategies on merchandising performance outcomes significantly differed, depending on assortment diversity and merchandise plan errors. The ability of supply chain merchandise replenishment strategies was limited in minimizing problems inherent in diverse assortments and over‐volume errors.

Research limitations/implications

Sourcing Simulator does not necessarily simulate merchandising processes and performance in real retail stores but principles developed through simulation can be applied in retail stores. Future research based on real information is suggested for additional realistic understanding.

Practical implications

The study suggests that apparel and retail firms should develop both up‐front assortment planning and replenishment strategies, considering the level of assortment diversity.

Originality/value

Based on Behavioral Theory of the Apparel Firm, the study contributes to understanding the importance of merchandising functions in an apparel firm. In addition, the study illuminates assortment diversity as an important factor of merchandise planning, especially when apparel and retail firms plan replenishment strategies to minimize merchandise plan errors.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 14 no. 3
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 1 August 2003

Diane Halstead and Richard C. Becherer

Internet marketing is a field which is continuing to grow, and the online auction concept may be defining a totally new and unique distribution alternative. Very few studies have…

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Abstract

Internet marketing is a field which is continuing to grow, and the online auction concept may be defining a totally new and unique distribution alternative. Very few studies have examined auction sellers and their Internet marketing strategies. This research examines the Internet auction phenomenon as it relates to the marketing mix of online auction sellers. The data in this study indicate that, while there is great diversity among businesses that utilize online auctions, distinct cost leadership and differentiation marketing strategies are both evident. These two approaches are further distinguished in terms of the Internet usage strategies employed by each group.

Details

Internet Research, vol. 13 no. 3
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 1 March 1978

Robert F. Lusch and James M. Kenderdine

Between 1970 and 1976 the competitive and economic environment in which retailers operated experienced a turbulence unprecedented in recent history. During this period the

Abstract

Between 1970 and 1976 the competitive and economic environment in which retailers operated experienced a turbulence unprecedented in recent history. During this period the compression of institutional life cycles coupled with dramatic shifts in consumer life styles plagued many retailers. In addition, a web of other factors, such as steadily increasing interest rates and inflation, a heightening of inter‐type competition and the competitive entry pressure created by a large inventory of vacant retail space, made it increasingly difficult to both assess and predict the environment. These environmental conditions have intensified pressures on retailers to improve their profit performance, both to insure survival in an increasingly uncertain environment and to provide a basis for future growth. At the same time, these conditions have exacerbated the retailer's problems in trying to obtain new capital. Unable to generate sufficient capital internally to finance both market repositioning and new growth, retailers have found themselves in many instances unable to afford the costs of new debt (if indeed they had the capacity to support it). At the same time, investor uncertainty, regarding both the future and the ability of retailers to adapt to it, has reduced the flow of new equity capital into retailing to a bare trickle. In short, retailers during this period have recognised the critical need to manage capital more efficiently.

Details

International Journal of Physical Distribution & Materials Management, vol. 8 no. 6
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 6 July 2012

Briana Martinez and Soyoung Kim

The purpose of this paper is to explore the impacts of several consumer characteristics (fashion leadership, impulse buying, bargain shopping), web site attitude, and visit…

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Abstract

Purpose

The purpose of this paper is to explore the impacts of several consumer characteristics (fashion leadership, impulse buying, bargain shopping), web site attitude, and visit frequency on intention to purchase from a private sale site.

Design/methodology/approach

Data were collected from 164 female respondents who were members of at least one private sale site. The sample was selected mainly by using a snowball sampling technique which relied on chain referrals to recruit eligible participants. Factor analysis results suggested that fashion leadership consisted of two dimensions: fashion opinion leadership and fashion innovativeness. Regression analysis was conducted to determine how strongly purchase intention for private sale sites was predicted by fashion opinion leadership, fashion innovativeness, impulse buying, bargain shopping, web site attitude, and visit frequency.

Findings

Regression results showed that ease of use was the only dimension of web site attitude that significantly predicted purchase intention. Impulse buying and bargain shopping also significantly influenced purchase intention. Implications for future research and limitations were also discussed.

Originality/value

As private sale sites continue to grow in popularity, insight into the psychology and behaviors of shoppers at these sites has become more important. There has been, however, no published research that examines what motivates consumers to purchase from private sale sites.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 16 no. 3
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 1 December 1995

Brenda Sternquist and Zhou Xi Qiao

Reveals that the People′s Republic of China is a market intransition. The Chinese Government wants to modernize the retailindustry as part of the movement from a planned economy…

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Abstract

Reveals that the People′s Republic of China is a market in transition. The Chinese Government wants to modernize the retail industry as part of the movement from a planned economy to a market economy. Reports that a series of interviews with managers of government‐owned department stores and co‐operatives, free market retailers and members of the municipal and federal commercial planning committees began in 1992. One year later, when a second series of interviews was conducted, the retail industry was vastly different. Joint ventures increased and store managers were given the right to choose their own form of operation. Consumers have experienced self‐service food stores and foreign department stores opened in Beijing and Shanghai. A third set of interviews conducted in March 1995 showed that many reforms had been rescinded because of high domestic inflation. Several new retail ventures aimed at the nouveaux riches in China have had to position downwards. Concludes that the People′s Republic of China′s change from a planned to a market economy is a lesson in social and market change.

Details

International Journal of Retail & Distribution Management, vol. 23 no. 12
Type: Research Article
ISSN: 0959-0552

Keywords

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