Out-of-stock justifications and consumers’ behavioral outcomes– exploring the role of product type and sales level information in out-of-stock situations

Madhumitha Ezhil Kumar, Dheeraj P. Sharma and Archit V. Tapar

Journal of Retailing and Consumer Services, 2021, vol. 60, issue C

Abstract: The present study extends prior research on stockouts by examining how product-related attributes interact with OOS justifications to influence consumer responses to stockouts. Drawing from Out-of-stock (OOS) literature, this study investigates how perceived popularity, perceived uniqueness, negative affect, and behavioral outcomes are influenced by out-of-stock justifications, product type, and sales level. Two scenario-based experiments and two field studies are conducted in which the cause of the stockout, product type, and sales level are manipulated at different levels. The results of the studies provide the following primary insights- 1) Consumers infer popularity of the product when the product is OOS due to high demand or when the sales level is high 2) Consumers infer uniqueness of the product when the product is OOS due to short supply but not when sales level is low 3) As the perceived popularity of utilitarian products or the perceived uniqueness of hedonic products increases, consumers' propensity to switch stores to purchase the OOS products increases 4) Consumers’ intention to spread negative word of mouth decreases when the cause of OOS or a high sales level is specified. Retailers can influence behavioral outcomes by specifying the cause of stockout tailored according to the type of product, or by providing sales level information.

Keywords: Out-of-stock; Product type; Sales level information; Perceived popularity; Perceived uniqueness; Negative affect (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:60:y:2021:i:c:s0969698921000242

DOI: 10.1016/j.jretconser.2021.102458

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