Assortment diversity in relation to financial productivity: contributions towards merchandising theory
The purpose of this study was to contribute to merchandising theory development by testing and refining Rupe and Kunz's Volume per Stock-keeping unit for an Assortment (VSA) and Assortment Diversity Index(ADI), using multiple merchandising performance measures. Behavioural Theory of the Apparel Firm with a Quick Response construct (BTAF/QR), was used as the theoretical framework for the study. The data were generated by a computer simulation of the merchandising process called Sourcing Simulator. Statistical analyses included Pearson correlation coefficients and regressions. The VSA had significant correlations with all 14 merchandising performance measures (p < 0:001), and the ADI was a consistent indicator of financial productivity considering all 14 merchandising performance measures. The results of the study supported the proposal of additional assumptions as well as propositions and hypotheses related to merchandising responsibility for BTAF/QR.
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