Status : Verified
| Personal Name | dela Cruz, Leo Karlo C. |
|---|---|
| Resource Title | Product assortment plan for convenience stores based on its nearby establishments |
| Date Issued | 23 June 2020 |
| Abstract | Convenience stores (CVS) are small retail business that carries a range of everyday items, and these stores are positioned in a more accessible location to the consumers. Compared to larger retail formats, convenience stores have a limited market. Previous research (Kuo, Chi & Kao, 2011) found that 75.42% of consumers are willing to walk up to 100 meters to the nearest convenience store. To make more profit, retailers should modify their product assortment according to the preferences of the consumers in a given location. This study developed a structured approach that identifies consumer preferences and generates a product assortment plan for the convenience store based on its nearby establishments. Consumer preferences were categorized into store clusters using k-means clustering. Associated nearby establishments were identified using association tests (e.g., Chi-square test, and confidence). The store cluster for the upcoming store was predicted using the shortest distance. To make more profit, retailers should decide which among product categories should be replaced by profitable product categories using the cluster preference table as a guide. Continued adjustments in the product assortment should be made to meet the target profit. To validate the model, sales data, nearby establishments, and the current product assortment of the leading convenience stores in Quezon City were gathered. Results show that the stores have distinct consumer preferences and have three store clusters. The preferred products of store clusters 1, 2, and 3 were ice cream, cigarettes, and bottled water, respectively. The associated nearby establishments of store clusters 1, 2, and 3 were residential, commercial, and high traffic areas, respectively. Knowing the preferences of the consumers at a given location ensures a significant profit increase in the product assortment. Hence, the research concludes that the proposed product assortment model is effective. |
| Degree Course | MS Industrial Engineering |
| Language | English |
| Keyword | product assortment; convenience stores; nearby establishment; consumer preference |
| Material Type | Thesis/Dissertation |
Preliminary Pages
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Category : I - Has patentable or registrable invention of creation.
Access Permission : Limited Access