Moderating Assortment Factors

In today's fast-paced world, consumers can access a wide range of products from different brands, making it challenging for retailers to differentiate themselves from their competitors. As a result, retailers have to carefully manage their product assortments to meet the needs of their customers. Moderating assortment factors can help retailers determine which products to offer, how to organize them in-store, and how to promote them to customers.

What are Moderating Assortment Factors?

Moderating assortment factors are the criteria retailers use to determine which products to offer and how to present them to customers. These factors include the product category, price, brand, packaging, and in-store placement. Retailers must consider these factors to create a product assortment that meets the needs of their customers and differentiates them from their competitors. While assortment factors can significantly impact consumer behavior, businesses can also moderate them to influence consumer decisions. By adjusting the number of options available, businesses can help consumers feel less overwhelmed and more confident in their choices. For example, by offering a limited selection of products, businesses can create a sense of exclusivity and increase the perceived value of their offerings. Businesses can also moderate prices.

For example, by offering promotions and discounts, businesses can make their products more attractive to price-sensitive consumers. However, it is important to balance price with perceived quality. If a product is priced too low, consumers may perceive it as low quality and be less likely to purchase it. Product size is another assortment factor that businesses can moderate. For example, by offering a range of sizes, businesses can cater to consumers with different needs and preferences. This can be particularly important for products used over time, such as food and beverages. By offering a range of sizes, businesses can make it easier for consumers to find the right size for their needs and reduce waste.

Product Category

One of the most critical assortment factors is the product category. Retailers must decide which product categories to offer based on customers' needs and preferences. For example, a sporting goods store may offer products in categories such as running, tennis, and basketball. However, the same store may not offer products in categories such as golf or swimming because their customers may not be interested in those categories.


Price is another crucial assortment factor. Retailers must determine the products' price range based on their customers' income and sensitivity. For example, a high-end fashion retailer may offer products at premium prices, while a discount retailer may offer lower prices.


The brand is another essential assortment factor. Retailers must decide which brands to carry based on customers' preferences. For example, a health food store may carry products from organic and natural brands to appeal to customers who prioritize health and wellness.


Packaging is another critical assortment factor. Retailers must consider the packaging design of their products to ensure they appeal to their customers. For example, a cosmetics retailer may offer products with packaging designs that appeal to a specific age group or demographic.

Placement in-store

The placement of products in-store is another important assortment factor. Retailers must decide where to place products in-store to attract customer's attention and increase sales. For example, retailers may place high-demand products at eye level or near the checkout to encourage impulse purchases.

Assortment Planning

The product is the most crucial component of the Retail Mix. Regardless of the shop atmosphere, good service, or appealing deals, customers will only be satisfied if they can purchase products that satisfy their demands. Range planning, also known as assortment planning, ensures that consumer demands are satisfied by purchasing the right breadth of the right product in the correct depth and delivering it to retailers on time. In layman's words, assortment planning is deciding what to buy, how many alternatives to buy, how much to buy from each option, and when to sell it.

What is decided by the client profile, how much by the expected turnover, the available capacity, and when by commercial considerations and product life? Retailers work in a competitive climate and must strive to distinguish themselves from their rivals. While part of this uniqueness will come from other sources, such as the shop atmosphere or marketing, the product will bear a large portion of the responsibility. When planning the assortment, keep the right product, place, and time in mind.

Right Product

Ensure that the consumer is continuously provided with the best available product option in terms of the following −

  • Describe your price architecture regarding your entry, mid, and premium price points.

  • Determine the price based on the consumer's willingness to pay while maintaining a clear pricing message and remaining flexible with your margin rate. With a fixed margin rate, do not establish the selling price based on the product's price.

  • Determine the essential looks and "must-have" goods.

Right Place

While choosing the assortment, one must consider the physical capabilities of each store. The replenishment cycle must also be taken into account. The sooner you can resupply from your DC or supplier, the less stock you need at the front end.

Right Time

Choosing the best time to launch the product is crucial. Several elements must be considered, such as peak festival occasions, holidays, and seasonal items.

Consumer Perspective on Moderating Assortment Factors

Understanding consumer behavior is critical to moderating assortment factors effectively. Businesses need to know what factors are most important to their target audience and how those factors influence decision-making. For example, if a business targets price-sensitive consumers, it may need to offer promotions and discounts to stay competitive. In addition to understanding consumer behavior, businesses also need to consider the context in which choices are made. For example, how consumers shop online may differ from how they shop in-store. Businesses must consider these differences when moderating assortment factors and creating a positive consumer shopping experience.

Moderating assortment factors play a crucial role in creating a product assortment that meets the needs and preferences of customers. Therefore, retailers must consider their customers' perspectives when deciding on assortment factors.

  • Customer Needs and Preferences − Retailers must understand their customers' needs and preferences to create an assortment that appeals to them. For example, a health food store may offer products that cater to specific dietary restrictions, such as gluten-free or vegan products.

  • Customer Price Sensitivity − Price sensitivity is another critical factor that retailers must consider from a customer perspective. Retailers must offer products at prices that are affordable to their customers. For example, a discount retailer may offer lower-quality products to appeal to price-sensitive customers.

  • Brand Preferences − Retailers must carry brands that align with their customers' preferences. Customers may prefer certain brands due to their reputation, quality, or values. Therefore, retailers must carry brands that align with their customers' values to build customer loyalty.

  • Packaging Design − Retailers must consider the packaging design of their products to appeal to their customers. Customers may prefer packaging that is aesthetically pleasing or functional. Therefore, retailers must offer products with packaging designs that meet their customers' needs and preferences.

The Effect of Assortment Factors on Consumer Behavior

Research has shown that assortment factors can significantly impact consumer behavior. For example, studies have found that when presented with many options, consumers may become overwhelmed and need help deciding. On the other hand, when presented with too few options, consumers may perceive the selection as limited and choose to shop elsewhere. Price is another crucial assortment factor.

Consumers are often drawn to products priced lower than the competition, but the price is only one factor that matters. Quality is also a key consideration, as consumers are often willing to pay more for products they perceive as higher quality. Product size is another factor that can influence consumer behavior. Consumers may be more likely to purchase a smaller product if they perceive it as more convenient or less wasteful.


In conclusion, moderating assortment factors is essential to consumer behavior and decision-making. By understanding what factors are most important to consumers and how those factors influence behavior, businesses can create a more positive shopping experience and increase sales. From adjusting the number of options available to moderating price and product size, businesses have various tools to influence consumer behavior. However, it is essential to balance these factors and consider the context in which choices are made.

Updated on: 30-Mar-2023


Kickstart Your Career

Get certified by completing the course

Get Started