Consumer reactions to retail out-of-stock: replication into new contexts

Abstract

This study empirically examines the impact of situational, consumer, store and product characteristic variables on consumers' behavioural reactions in out-of-stock situations in retail. A survey method for data collection was used with a sample of 1,207 retail customers in India's unorganised retail sector across five product categories in Varanasi, India. Results showed that 11 out of 13 independent variables had a significant impact on at least one of the three behavioural responses considered. As the data was collected only for five product categories and for unorganised retail setting, findings are not generalisable beyond these limitations. Empirical research like this helps to develop an understanding about the consumer behaviour which differs widely across settings. It is one of the first studies in an unorganised retail in India. Study provides crucial insights to the retailers by identifying independent variables that must be considered while designing their operations and strategies to fight out-of-stock. Implications for the retailers and the future research are discussed.