Smart Subcategories : How Assortment Formats Influence Consumer Learning and Satisfaction

We show that formats used by retailers to organize assortments into subcategories can enhance or encumber consumers’ learning and satisfaction. For more knowledgeable consumers, unexpected subcategory formats provide a newness cue, thereby increasing effort, learning and satisfaction with the shopping experience. Conversely, low prior knowledge consumers show decreases in learning and satisfaction when choosing from an unexpected subcategory format. Interestingly, results also suggest that consumers may anticipate the potential benefits of unexpected subcategory formats for more knowledgeable individuals. As such, findings suggest that subcategory formats can be strategically used both for the benefit of the consumer and retailer