The role of scarcity-inducing post-stockout disclosures on consumer response to stockouts

Abstract

PurposeApplying a middle-range theorizing to premises of signaling theory and the scarcity principle, this study aims to investigate the mechanisms and effects of different patterns of post-stockout disclosures that highlight the limited supply and high quality of a durable good on consumer satisfaction with the shopping experience and purchase intention, mediated by consumer perceived product scarcity.Design/methodology/approachThe hypotheses are tested with two scenario-based experiments. The first experiment—a between-subjects design—explores the effect of post-stockout disclosures on consumers' perceived scarcity, satisfaction, and purchase intention. The second experiment – a within-subject design – examines the impact of time on consumer responses to stockouts.FindingsResults indicate that perceived product scarcity mediates the relationship between post-stockout disclosures and consumer outcomes. Specifically, post-stockout disclosures present an indirect positive effect on consumer purchase intention, despite reducing satisfaction beyond the effects of the stockout. These results are consistent when disclosures are sent through multiple channels. Results also show that consumers' perceived scarcity and purchase intention decrease over time while dissatisfaction levels remain the same when stockouts persist.Practical implicationsEven though consumers will be dissatisfied upon experiencing a stockout, specific patterns of post-stockout disclosures can be a valuable strategy for consumer retention and lost sales prevention.Originality/valueWhile recent consumer-centric supply chain management literature has investigated mitigation strategies of detrimental consumer response to stockouts, such as “save-the-sale” tactics and price discounts, the mechanisms and effects of different patterns of post-stockouts disclosures highlighting the limited supply and high quality of the product are yet to be investigated.