Abstract
Retailers generally attract consumers to further locations by offering discounted merchandise. We suggest an alternative strategy is to increase the availability (or certainty) of finding the merchandise at their store (i.e., reduce stock-outs). We conduct three experiments to highlight that consumers view travel time more adversely when there is uncertainty about merchandise availability. We also demonstrate that the negative effects associated with uncertainty around merchandise availability and travel time can be mitigated through the use of in-stock guarantees.
Original language | English (US) |
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Pages (from-to) | 437-444 |
Number of pages | 8 |
Journal | Journal of Retailing |
Volume | 88 |
Issue number | 3 |
DOIs | |
State | Published - Sep 1 2012 |
Keywords
- Merchandise guarantee
- Pricing
- Stock-outs
- Travel time
ASJC Scopus subject areas
- Marketing