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Purpose: This study aims to investigate cross-category effect of assortment expansion with regard to consumer and store characteristics. Research design, data, and methodology: This study examined the influence of consumers' previous purchase pattern and store characteristics on purchase amount of new products by using hierarchical linear model(HLM). In addition, we analysed how assortment expansion affect purchase proportion of other product categories. Consumer's purchase data before and after fresh meat products introduction was collected from 10 stores of Hansalim, the leading food cooperative in Korea. Results: First, consumers’ previous purchase proportion of each product categories and total purchase amount could be predictors for purchase of fresh meat. Second, increase of fresh meat purchase make purchase proportion of processed food, convenience food, and health functional food lower, but make that of fruit, seafood, and vegetable categories higher. Third, the response toward fresh meat introduction was varied according to store characteristics and competition environments. Conclusions: Cross-category interaction should be considered when store managers plan their assortment strategy, as well as the influence of same product category. Furthermore, they have to investigate purchase pattern of their customers and their store characteristics beforehand.
