TY - JOUR
T1 - Opportunities for Active Stock-Out Management in Online Stores: The Impact of the Stock-Out Policy on Online Stock-Out Reactions
AU - Breugelmans, E.
AU - Campo, K.
AU - Gijsbrechts, E.
PY - 2006/1/1
Y1 - 2006/1/1
N2 - This paper investigates the impact of an online retailer's stock-out policy on consumers’ category purchase and choice decisions. We investigate three different policies: (1) stock-outs are immediately visible and there are no replacement suggestions, (2) stock-outs are only visible after purchase attempts and (3) stock-outs are immediately visible but a replacement item is suggested. Results from an online grocery shopping experiment reveal that the adopted stock-out policy has a significant impact on both decisions. Making stock-outs not immediately visible creates confusion and intensifies the consumer's loss experience, thereby reducing the tendency to buy in the category. Suggesting a replacement item, in contrast, facilitates the substitution decision and slightly reduces the purchase cancellation rate. It also substantially increases the suggested item's choice probability. Yet, this effect disappears when higher-priced – suspicious – items are suggested. Overall, these results indicate that online grocery retailers have an interest in pursuing open and convenience-oriented stock-out policies.
AB - This paper investigates the impact of an online retailer's stock-out policy on consumers’ category purchase and choice decisions. We investigate three different policies: (1) stock-outs are immediately visible and there are no replacement suggestions, (2) stock-outs are only visible after purchase attempts and (3) stock-outs are immediately visible but a replacement item is suggested. Results from an online grocery shopping experiment reveal that the adopted stock-out policy has a significant impact on both decisions. Making stock-outs not immediately visible creates confusion and intensifies the consumer's loss experience, thereby reducing the tendency to buy in the category. Suggesting a replacement item, in contrast, facilitates the substitution decision and slightly reduces the purchase cancellation rate. It also substantially increases the suggested item's choice probability. Yet, this effect disappears when higher-priced – suspicious – items are suggested. Overall, these results indicate that online grocery retailers have an interest in pursuing open and convenience-oriented stock-out policies.
U2 - 10.1016/j.jretai.2006.05.001
DO - 10.1016/j.jretai.2006.05.001
M3 - Article
SN - 0022-4359
VL - 82
SP - 215
EP - 228
JO - Journal of Retailing
JF - Journal of Retailing
IS - 3
ER -