The impact of retail out-of-stock options on preferences: The role of consumers’ desire for assimilation versus differentiation

Ku, Hsuan‐Hsuan; Kuo, Chun‐Yan; Fang, Wei-Luen; Yu, Yifeng

doi:10.1007/s11002-013-9241-6

Cited by 11 publications

(14 citation statements)

References 45 publications

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“…In practice it is common to find products that are out-of-stock because vendor limits the supply, such as limited-quantity promotion [2] and limited-edition product. In line with previous studies, we classify stockout causes into supply-based and demand-based [20,21]. Supply-based stockout is caused by limited quantity that vendor wants to sell, while demand-based stockout is caused by excess quantity that consumers want to buy.…”

Section: Introductionmentioning

confidence: 89%

“…The latter were high-equity branded product and low-equity branded product. Stockout causes were manipulated experimentally by means scenarios given to the participants, the same as former study [21]. We stated retailer's explanation for supply-based stockout as "Because this product is a limited edition, supply from vendor is limited", and demand-based stockout as "Because this product is very popular, consumers' demand exceed stock".…”

Section: Methodsmentioning

confidence: 99%

“…In all conditions, participants reported their preference for the product in terms of its "attractiveness", in the aspects of bad/good, not nice/nice, and unlikeable/likeable, three seven-point scales adopted from Zhang and Buda (1999), and anchored by 1 = very low and 7 = very high (Cronbach's alpha = .877). This scale was also used in previous studies about consumer preference [21].…”

Section: Methodsmentioning

confidence: 99%

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The Effect of Stockout Cause and Brand Equity on Consumer Preference in Online Retailing

Jian

Chu

2015

Lecture Notes in Electrical Engineering

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Abstract. Customers can browse the information of stockout items in online retailing, thus change their preferences for the stockout product. This study tests the hypothesis that brand equity moderates the effect of causes of stockout on consumer preference for the online stockout product. The results reveal that for high-equity branded products, consumers exhibit a slit decrease in preference for the product whether the product is out-of-stock due to heavy demand or short supply. By comparison, for low-equity branded products, consumers increase preference for the product if the product is out-of-stock due to excessive demand and decrease preference for the product if stockout cause is supply-based. These findings highlight the importance of taking the product's brand equity into consideration when stating different kinds of causes for stockout to consumers.

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Section: Introductionmentioning

confidence: 89%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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The Effect of Stockout Cause and Brand Equity on Consumer Preference in Online Retailing

Jian

Chu

2015

Lecture Notes in Electrical Engineering

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“…Moreover, a product outage occurrence is typically unexpected. As such, a product outage occurrence requires a potential purchaser to construct a behavioral reaction and an impression at the instant of realization, which might be subject to the manner and context in which the product outage is framed (e.g., Ku, Kuo, Fang, & Yu, ).…”

Section: Foundational Literaturementioning

confidence: 99%

Out‐of‐stock, sold out, or unavailable? Framing a product outage in online retailing

Peterson

Kim

Jeong

2019

Psychology and Marketing

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Terms, such as "out-of-stock," "sold out," and "unavailable" are commonly used by retailers to communicate a product or brand outage. Although these terms are technically equivalent, prior research on product outage and product scarcity suggest that they may be interpreted and processed differently by consumers. The present research investigated whether the manner in which a product outage was framed elicited different consumer behavioral intentions, attributions, and perceptions in the context of online retailing. Data were collected by means of an online experiment.The experiment incorporated a hypothetical scenario approach in which research participants were asked to react to a particular combination of treatment and blocking factors. Results demonstrated that ceteris paribus, framing a product or brand outage as "sold out" produces fewer negative product and website reactions than does framing it as "out-of-stock" or "unavailable."framing effect, online retailing, out-of-stock, product outage, sold out, unavailable 1 | INTRODUCTION Preliminary figures from Statista indicate that retail e-commerce sales in the U.S. were estimated to be a minimum of $547 billion in 2019 and were projected to grow to $740 billion by 2023. 1 Since product and brand outages (hereafter "product outages") are inevitable from time to time, it is imperative that online retailers strategically confront such occurrences and appropriately communicate the availability of products and brands that they market, not only to maximize sales but also to properly provide customers and potential customers with information that they can use to make informed purchase decisions.Out-of-stock, sold out, or unavailable? Retailers, and especially e-retailers or online retailers, use terms, such as these to communicate a product outage to potential purchasers. For example, brief perusal of the internet reveals a ToysRus website that lists a particular Rallye bicycle as "out-of-stock." Simultaneously, a Sennheiser headphone is "currently unavailable" on Amazon, and a Facebook post states that a Keenan McKenzie CD is "sold out." Product outage is a common occurrence and an endemic problem, especially for holidays (e.g., Christmas), promotional sales days (e.g., Black Friday), and newly released items (e.g., Apple iphone). 2 The consequences of inventory shortages are a significant setback for retailers in both tangible (reduced revenue and loss of profit) and intangible (decreased customer satisfaction and loyalty) ways (e.g., Breugelmans, Campo, &

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“…Thereby, the out-ofstock has been identified as one of the most important issues for customers, which decreases their consumption benefit [7]. It directly affects their behaviour [8] and may result in substitution, transaction and opportunity costs [9].…”

Section: Introductionmentioning

confidence: 99%

Retail Out-of-stocks in the Context of Centralized and Direct Delivery

Milićević

Grubor

Đokić

et al. 2018

PROMET

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The impact of retail out-of-stock options on preferences: The role of consumers’ desire for assimilation versus differentiation

Cited by 11 publications

References 45 publications

The Effect of Stockout Cause and Brand Equity on Consumer Preference in Online Retailing

The Effect of Stockout Cause and Brand Equity on Consumer Preference in Online Retailing

Out‐of‐stock, sold out, or unavailable? Framing a product outage in online retailing

Retail Out-of-stocks in the Context of Centralized and Direct Delivery

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