Reversing the Similarity Effect in Stock‐Outs: A New Look at a Renowned Phenomenon in Consumers’ Brand Switching Behavior

Abstract

Over 40 years of research has established the robustness of the similarity effect (SE; Tversky, ), which states that the introduction of new options into choice sets predominantly reduces the choice share of similar options. The present work examines whether the SE systematically reverses when real brands are excluded from assortment subsets, as is the case with stock‐outs in real purchase decisions. To this end, within‐subject decisions are examined under certain out‐of‐stock (OOS) conditions in an enhanced experimental design that resembles real shopping environments. Specifically, unforced choices of experienced consumers, inclusive of real payments, are observed for products in online transactions. The results of two studies corroborate the existence of a reserved SE. Specifically, the OOS‐induced switching patterns systematically refute the assumptions of classic economic theory, since consumers disproportionately switch to alternatives which are similar to the unavailable item in contrast to dissimilar substitutes. Finally, managerial implications and potential directions for follow‐up research in the general domain of marketing are deduced.

Co-query volume as a proxy for brand relatedness

“…Furthermore, the possibility of a sales boost of a similarly perceived brand with a newly unavailable brand was consistent with results of prior studies (e.g. Müller and Diels, 2016;Ge et al, 2009) and in a study examining product-harm crisis in an experimental setting (e.g. Siomkos et al, 2010).…”

“…Similarity between products or brands have often been predetermined in experimental studies (e.g. Ge et al, 2009;Müller and Diels, 2016) and these may not correspond to the actual perceptions of consumers. Roehm and Tybout (2006) obtained the similarities between products and brands through survey questionnaires.…”

“…For example, when the best choice option in an initial consideration set is unavailable (e.g. an out-of-stock item), consumers choose alternatives that are similar (Müller and Diels, 2016). In addition, sold-out products may enhance the perceived attractiveness of similar products (Ge et al, 2009).…”

How brand loyal shoppers respond to three different brand discontinuation scenarios

“…Second, the negative similarity effect finding provides a theoretical lens from which to hypothesize switching response behaviour by consumers facing a permanent brand discontinuation. Consumers facing a discontinued brand scenario will tend to substitute disproportionately in favour of a brand that has similar attributes (Muller and Diels, 2016). We therefore advance the following hypothesis:…”

Influence of Different Sales Models on Psychological Reactance of Consumers in Online Shopping of Fresh Fruits

“…The farmer households can choose the market trading mode or the sales contract form for the fresh fruit. Under the existing constraints, the farmer must choose the collaboration mode of the industrial chain for risk minimization and income maximization (Müller & Diels, 2016). Figure 1 shows the fluctuation of fruit planting area in China, clearly indicating an increase year by year; the planting area has increased from 13.05 million hectares in 11 years to 15.37million hectares in 2018.…”