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CASE STUDY: AVERY SPORTING GOODS CATALOG BUYING

A case study on catalog buying strategies used by Avery Sporting Goods.

Emma Thompson
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CASE STUDY: AVERY SPORTING GOODS CATALOG BUYINGSTUDY BACKGROUNDThe primary purpose of the study was to gain insight into people who are likely to buyfrom catalogs. Avery’s management was stimulated to conduct the study by published researchinvestigating the characteristics of in-home (mail order or catalog) shoppers versus storeshoppers. This research had indicated that there were differences in the demographiccharacteristics of those likely to buy in-home from those likely to buy in a store. These studieshad also indicated that those who shop in-home are motivated by convenience. Further, theproduct “is not necessarily the most important determinant of the success or failure of an in-home sale; prior shopping experience, the quality of the product description, its price, delivery,and guarantee policies also interact to influence the degree of perceived shopping risk.” Theevidence also indicated that the perceived risk in buying in-home was higher than it was with in-store buying. Those who purchased in-home had higher tolerances for perceived risk. Alsoimportant was the fact that the degree of risk varied by product. It was highest for high-pricedand personalized items.BACKGROUND INFORMATIONThrough the years, Avery Sporting Goods had been one of the leading catalog sellers ofsporting equipment in the country. Known for its wide assortment and colorful print displays, thecompany’s catalogs had been very popular with customers and employees, and workers hadprided themselves on the high number of orders filled correctly. Still, management wasconsidering expanding company operations by opening retail sporting goods stores. The threestores that the company had recently opened on the east side of Buffalo, New York, had met withtremendous sales success, far surpassing company expectations. Filled with growing optimism,management had developed plans to open three other stores during the next six to eight monthsin other areas of western New York. However, executives were not sure what to do with thecompany’s catalog sales division.Although catalog sales had been substantial, the level of growth had begun to taper off.This appeared to be an industry trend, as other sporting equipment enterprises offering catalogsales and services had experienced similar low rates of growth in sales revenues. Althoughcurrent income from catalog sales was adequate to financially support Avery’s plan to developretail stores, company management had no desire to de-emphasize its catalog operation. In fact,given the catalog’s ability to reach a national market at relatively low costs, Avery believed thata large portion of its future success resided in catalog customers. Hence, the company wasextremely interested in revitalizing this market segment. As a first step toward the formulation ofa long-term strategy for ensuring the continued viability of catalog sales, Avery managementdecided to have its marketing research department survey a sample of past, present, and potentialcatalog customers, operationally defined as all those who had been sent catalogs in the past threeyears, to get a better feel for the catalog market. The issues that were to be addressed includedthe following:•Customer perceptions of buying merchandise, in particular sporting equipment, throughcatalogs•People’s evaluation of Avery’s offerings and services•Characteristics of Avery customers

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