Title: The impact of retailer stockouts on whether, how much, and what to buy
Authors: Campo, Katia ×
Gijsbrechts, Els
Nisol, Patricia #
Issue Date: Sep-2003
Publisher: Elsevier science bv
Series Title: International Journal of Research in Marketing vol:20 issue:3 pages:273-286
Abstract: This paper investigates the impact of retailer stockouts on whether, how much, and what consumers buy in a category during the out-of-stock period. It adds to previous literature by investigating the stockouts' impact on purchase quantities, by uncovering the pattern of within-category shifts triggered by them, and by analyzing dynamic effects on incidence, quantity, and choice decisions. Although essential for an accurate assessment of stockout implications, these aspects of out-of-stock (OOS) behavior have received little attention so far. Moreover, while most of the previous literature on stockouts relies on surveys measuring reported or intended behavior, this research examines revealed stockout response in a natural store environment. To this end, traditional purchase incidence, quantity and choice models are adapted to account for various stockout effects, and estimated based on scanner panel data for two product categories. While tractable, the models capture various aspects of stockout reactions within the store, allowing to trace the implications of stockouts for specific SKUs and household (segment)s. The estimation results demonstrate that out-of-stocks can affect all three purchase decisions: they may reduce the probability of purchase incidence, lead to the purchase of smaller quantities, and induce asymmetric, non-IIA choice shifts. Simulation of aggregate implications further suggests that, on the whole, retailer losses from stockouts remain limited, while manufacturer losses can be quite substantial, depending on the stockout item and the store's assortment composition. (C) 2003 Elsevier B.V. All rights reserved.
ISSN: 0167-8116
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Centre for Marketing and Consumer Science, Leuven
Faculty of Economics and Business (FEB) - miscellaneous
Faculty of Economics and Business (FEB), Campus Carolus Antwerp - miscellaneous
× corresponding author
# (joint) last author

Files in This Item:
File Status SizeFormat
impactofretailer.pdf Published 163KbAdobe PDFView/Open Request a copy

These files are only available to some KU Leuven Association staff members


All items in Lirias are protected by copyright, with all rights reserved.

© Web of science