Does Travel Time to Stores Matter? The Role of Merchandise Availability

Dhruv Grewal, Praveen Kopalle, Howard Marmorstein, Anne L. Roggeveen

Research output: Contribution to journalArticle

18 Scopus citations

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 languageEnglish (US)
Pages (from-to)437-444
Number of pages8
JournalJournal of Retailing
Volume88
Issue number3
DOIs
StatePublished - Sep 1 2012

Keywords

  • Merchandise guarantee
  • Pricing
  • Stock-outs
  • Travel time

ASJC Scopus subject areas

  • Marketing

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