Consumers’ Response to Out-of-Stock Situations

Abstract

This study investigates the impact of purchase motivation, price promotion availability, frequency of out-of-stock situations, and urgency of need in an out-of-stock situation on consumers’ intensity of negative emotion and the impact of these negative emotions on consumers’ behavioral response, word of mouth communication, and store loyalty. One hundred ninety-six students participated in the online survey, where they had to recall an out-of-stock situation within the past three months. Results demonstrated a significant direct effect between urgency of need in out-of-stock situation and consumers’ negative emotion. Furthermore, findings showed that the intensity of consumers’ negative emotions influences their behavioral response and partially their word of mouth communication. Negative emotion and store loyalty had no significant effect. This study’s findings allow retailers to manage stockout situations and minimize consumers’ negative emotions due to stockouts.