The impact of stock-outs on whether, how much and what to buy

Katia Campo · Els Gijsbrechts · Patricia Nisol

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Consumer Market Behavior and Pricing Supply Chain and Inventory Management Consumer Retail Behavior Studies

Abstract

This paper investigates the impact of stockouts on category purchase incidence, purchase quantity and within-category choice, in different consumer segments. Based on scanner data for two product categories, we find that stockouts may lead to the purchase of smaller quantities, and to asymmetric (non-IIA) choice shifts. Reactions to stockouts are also found to be linked to the shopper’s basket size, 3 Stock-outs, or temporary unavailability of items on the retailers ’ shelves, are a non-negligible phenomenon at retail. Recent studies report not only a high incidence of stock-outs for FMCG in a supermarket setting (see e.g. Anupindi et al. 1998), but also indicate that such stock-outs may entail

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