Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56673
Authors: 
Wiebach, Nicole
Diels, Jana L.
Year of Publication: 
2011
Series/Report no.: 
SFB 649 discussion paper 2011-050
Abstract: 
In general, consumer preferences depend on the context of a decision situation. This paper highlights the context-dependence of substitution behavior in out-of-stock (OOS) situations and provides evidence for the relevance of promotion as essential driver of customers' OOS reactions. We demonstrate both theoretically and empirically how OOS-induced preference shifts can be explained and predicted using context and phantom theory. In a series of experiments, we show that consumers substitute in accordance to a negative similarity effect, which is reduced for stock-outs of promoted low-involvement FCMGs. If a similar substitute is offered at a reduced price, the effect is enforced. For dissimilar substitutes, we show the contrary. The empirical findings further suggest an augmented probability of purchase postponement and a significant smaller chance of brand switching for stock-outs of promotional products. Furthermore, our study emphasizes outlet switching as a so far uninvestigated OOS reaction and discusses implications for retailers and manufacturers.
Subjects: 
out-of-stock
context effects
phantoms
promotion
preference shifts
JEL: 
M31
C12
C13
C81
Document Type: 
Working Paper

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