Author(s): Madhumitha Ezhilkumar
Out-of-stock situations evoke negative reactions from consumers and cause losses to retailers and manufacturers. This study examines how stockouts can be justified to promote positive behavioral intent. Drawing from Out-of-stock literature, this study examines the impact of the interaction between product type and OOS justification on consumers’ behavioral intent. Through a 3*3 experiment, it is found that consumers display more positive behavioral intent for utilitarian products whose stockout is attributed to high demand by other consumers. Conversely, for hedonic products, consumers are found to display a more positive behavioral intent when stockout is attributed to the retailer. The study further delves into the mediators influencing the relationship between product type, OOS justification, and behavioral intent. It is found that the relationship between OOS justification and behavioral intent is mediated by perceived consumption risk for utilitarian products and perceived uniqueness for hedonic products. Using the results of the study, retailers can tailor their OOS communication depending upon the product type.