Abstract
Stockouts do present a threat to a brand's stability in the marketplace. But is that threat as significant as one might initially be led to believe? The results of this study, as well as two prior efforts of similar methodology (Charlton and Ehrenberg 1976; Motes 1980), would suggest not, at least in the context of multi-brand inventories. It is strongly suggested that retailers, as well as manufacturers, need not be overly concerned about protracted adverse effects emanating from temporary stockouts at the retail level.
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Motes, W.H., Castleberry, S.B. A longitudinal field test of stockout effects on multi-brand inventories. JAMS 13, 54–68 (1985). https://doi.org/10.1007/BF02737199
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DOI: https://doi.org/10.1007/BF02737199