Understanding consumer reaction to stockouts is a key step in measuring the cost of a stockout

Understanding consumer reaction to stockouts is a key step in measuring the cost of a stockout, which remains one of the fundamental concepts in logistics that still lacks a usable measure. Accordingly, the goal of this research is to explore how consumers react to a retail stockout. Three types of reactions were considered: substitution of the item sought, delaying the purchase or leaving the store. Results show that consumers are apparently able to insulate a recent stockout experience from their perception of other dimensions of a store’s image.. In addition, a multinomial logit modeling approach is used to show that (1) no significant results were found linking demographic variables to consumer response, (2) the greatest impact on the Delay and Leave behaviors is concentrated on two variables (perception that the store offers good prices and consumer surprise with the stockout) and (3) situational variables are predominant among correlates of consumer response behavior.

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