The impact of promotions on consumer choices and preferences in out-of-stock situations

Jana Luisa Diels, Nicole Wiebach and Lutz Hildebrandt

Journal of Retailing and Consumer Services, 2013, vol. 20, issue 6, 587-598

Abstract: Out-of-stock is a prevalent problem in retailing, particularly for promoted products. This research analyzes customers' substitution decisions in out-of-stock situations by accounting for the specific impact of promotions. The results of two studies demonstrate that substitution patterns are context-dependent and change contingent on the relative positions of the promoted and the respective unavailable product. Specifically, preferences shift according to a reversed similarity effect, which is, however, reduced for stock-outs of promoted items. If a similar substitute is on sale, the effect is increased. For promoted dissimilar substitutes, the effect is offset by the simultaneous occurrence of an attraction effect. The results lead to important theoretical and managerial implications.

Keywords: Out-of-stock; Context effects; Phantoms; Promotion; Consumer decision making (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:20:y:2013:i:6:p:587-598

DOI: 10.1016/j.jretconser.2013.04.009

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