Effects Of Stockouts On Purchase Behavior And Retail Patronage: An Experimental Investigation

Abstract

A longitudinal field experiment was conducted to assess the effects of out-of-stock conditions both during and after the stockout occurred. Findings suggest that when a brand goes out of stock, low-share brands tend to pick up more sales than high-share brands. After the stockout brands were reintroduced a moderate negative carryover effect was the results, with other low-share brands reaping a moderate positive carryover effect. When a brand was reintroduced at a higher price (than its pre-stockout level) a moderate positive carryover effect resulted. During the stockouts, customers did shop in other outlets. However, no negative consequences seemed to be present in terms of patronage behavior once the brand was again available at the regular outlet.