University of Twente Student Theses


The influence of out-of-stock policies on customer behavior.

Bijen, R.J. (2015) The influence of out-of-stock policies on customer behavior.

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Abstract:The influence of out-of-stock policies on customer behavior has been a topic of research for many years. But most of the studies have been conducted in the offline environment. This paper found that customer behavior differs between the online and offline market. The online market keeps growing with the year and so is the importance of using the right out-of-stock policy. Traditional out-of-stock policies such as leaving the shelve empty were found to have negative effects on direct sales and the store image. Reason for this is the higher transparency of the online market, which makes it easier for customers to switch between stores when they face an out-of-stock situation. Organizations should adapt new out-of-stock policies that fit with the online environment to influence the customers’ buying decision in a positive way. This paper has tested two new policies by giving customers the opportunity to backorder a product in a hypothetical situation. The results showed that customers are willing to wait on an out of stock product when given the opportunity. Compensating customers for the out of stock situation led to even more sales and an improved store image.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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