Abstract
The objective of this exploratory study was to examine stock-outs as an event and document their effects on changes in customer attitudes. A study containing both open-ended and close-ended elements was validated through a pilot study and used to collect data from 100 randomly selected participants spending at Shewa Shopping Center in Addis Ababa. The finding indicated that repeated stock-out experiences reduced customers’ loyalty to brand and retailer and caused customers to leave both retailers and brand. Participants indicated that stock-out effects can be shielded through improved inventory management and better customer service. Explicit recommendations involved apology, price discounts and free delivery. The finding of this study will enable retailers to gain deeper considerate of how stock-out affects customers shopping experiences and loyalty, and offer alleviation measures to improve both. In addition, the finding will provide a positive change to both customers and retailers, where shoppers will enjoy pleasant shopping experiences and retailers can maintain their competitive advantage via loyalty of their customer. Keywords : Showa Shopping Center, Stock-out, Shoppers Behavior, Buyers Loyalty DOI : 10.7176/EJBM/11-1-01
Highlights
1.1 Backdrop of the study Starting from the early 1990s, when organizations began to recognize the dynamics of demand fluctuation, companies have considered inventory management as integral to the supply chain process and have introduced innovative ideas to compete globally
1.5 Limitations This study focused on customer behaviors after stock-out experiences at Shewa Shopping Center at Addis Ababa
Findings of the study indicated that women value pleasant shopping experiences and respond more negatively to stock-out, and are more likely to change stores when they think they are receiving bad customer service
Summary
1.1 Backdrop of the study Starting from the early 1990s, when organizations began to recognize the dynamics of demand fluctuation, companies have considered inventory management as integral to the supply chain process and have introduced innovative ideas to compete globally. 1.2 Statement of the Problem As stock-out experiences negatively affect customers’ purchasing behaviors and shopping attitudes retailers using the lean inventory strategy have increased risk of stock-outs and dropping customers Rani & Velayudhan (2008). Results of this research will underline to retailer’s specific customer and profit-related problems associated with lean practices and identify possible solutions to alleviate the negative effects of stock-out. Results would help supply chain Shewa Shopping Center improve lean inventory practices and possibly reduce customer stock-out experiences. The outcomes of this study will inform Shewa Shopping Center of specific problems associated with poor customer service caused by stockout and would enable retailers to provide better service to customers while keeping profit margins. Applying lean inventory creates a winning strategy for retail companies, as retailers can save money from not www.iiste.org carrying unnecessary inventory, improve operational efficiency, and contribute to the long-term sustainability of the national environment
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