Category Management's Effects on Retail Business Profitability and Operations

The primary emphasis of the study is on how in-store category management qualities affect customer loyalty to the retailer. Here, both the duration of affiliation with the shop and the frequency of visits for a certain category of purchases have been considered for determining customer loyalty. Impact of category management on the operations and profitability of a retail shop, as well as the impact of in-store category management features or activities, such as pricing management actions, on the degree of satisfaction with the entire purchasing experience of a category. This research outlines the link between category management activities and customer loyalty, the shopping experience of the category, and its impact on the operations and profitability of the retail business. It is a descriptive study. The major source of data used in research is questionnaire survey data. Consumers of the food categories Beverages and Snacks as well as the non-food category Kids' clothes are the ones who provide the data. Along with secondary sources, questionnaire surveys were used to acquire primary data directly from retailers in order to examine the impact of category management activities on operations and profitability. The connections between duration of association and frequency of visits on the one hand, and ambiance and category management features on the other, were examined using significance tests. Using multiple regression analysis and creating a pertinent model for the same, the impact of ambiance and category management qualities on duration of association and frequency of visit to the shop is further established. Similar significance tests were conducted using ANOVA and multiple regression analysis to ascertain the association between category management and price management activities and the shopping experience of consumers. To examine the impact of category management on the functionality and profitability of retail establishments, mean difference tests were conducted.