Tonight marks the beginning of yet another journey... the dissertation. While I have been somewhat working on the dissertation for some time, it isn't until tonight that I put pen to paper and wrote what is the first version of my introduction. I thought I would mark this milestone in my life by posting to this blog since I have not for a very long time.
My selected dissertation topic is now the impact of stockkeeping unit (SKU) reductions on consumer price sensitivity. In essence, what I want to study is how consumers respond to changes in price both before and after a SKU reduction. A SKU reduction occurs when the retailer decides to remove items from the store. This is often done due to what some call SKU proliferation or the tendency for retailers to add more items then are removed. Over time a retailer will end up with a plethora of items in any given category which can become an inventory nightmare. In order to work around this, some retailers attempt to reduce the number of SKUs (unique items) on the shelf while still maintaining as much variety as possible for the consumer.
What happens to the consumer's sensitivity to price when this occurs? Prior to the SKU reduction, for example, consumers may exhibit high price sensitivity switching brands or even stores over slight changes in price. After the reduction the consumer base may then be less likely to switch brands or stores due to changes in price.
This is sort of the large scope of what I intend to study. I will, of course, narrow this down to one or a few specific categories. I will also more than likely be studying this phenomenon within the mass retail sector as opposed to C-Store, grocery, or other types of retail.
I will hopefully begin posting more frequently to this blog with my thoughts along my topic as well as my progression through the dissertation process.