Abstract
This chapter presents a research study of online availability (OLA) in six non-food consumer goods categories (baby care, fabric care, hair care, oral care, skin care, and shave care) at online and omnichannel retailers in six major countries (China, France, Germany, Japan, UK, and USA). It provides insight into the extent of online availability (OLA) and its opposite non-online availability (NOLA) using data from online retailers’ websites, reports from surveys of online shoppers, and surveys from managers of online retail and branded goods manufacturers. It illuminates online shoppers’ encounters with NOLA and reactions to it with a detailed examination of switching behavior to alternative options. It estimates the lost sales opportunities and provides guidelines for improving OLA.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
See Corsten and Gruen (2018) for full details of the study presented in this chapter. Permissions for use in this work were provided by the authors and publisher.
- 2.
References
Anderson, E., Fitzsimons, G., & Simester, D. (2006). Measuring and mitigating the costs of stockouts. Management Science, 52(11), 1751–1763.
Anupindi, R., Dada, M., & Gupta, S. (1998). Estimation of consumer demand with stockout based substitution: An application to vending machine products. Marketing Science, 17(4), 406–423.
Bell, D., Gallino, S., & Moreno, A. (2014). How to win in an omnichannel world. Sloan Management Review, 56(1), 45–53.
Breugelmans, E., Campo, K., & Gijsbrechts, E. (2006). Opportunities for active stock-out management in online stores: The impact of the stock-out policy on online stock-out reactions. Journal of Retailing, 82(3), 215–228.
Campo, K., Gijsbrechts, E., & Nisol, P. (2000). Towards understanding consumer response to stock-outs. Journal of Retailing, 76, 219–242.
Campo, K., Gijsbrechts, E., & Nisol, P. (2003). The impact of retailer stockouts on whether, how much, and what to buy. International Journal of Research in Marketing, 20(3), 273–286.
Coca Cola Research Council. (1996). The retail problem of out of stock merchandise. Atlanta: Author.
Corsten, D., & Gruen, T. W. (2018). Online availability - A worldwide study of extent, shopper reactions, and strategies for non-food categories in digital retail. Washington D.C: Grocery Manufacturers Association.
Corstjens, J., & Corstjens, M. (1995). Store wars: The battle for mindspace and shelfspace. New York: Wiley.
Cui, R., Zhang, D. J., & Bassamboo, A. (2019). Learning from inventory availability information: Field evidence from Amazon. Management Science, 65(3), 955–1453.
Ehrenthal, J. C. F., Gruen, T. W., & Hofstetter, J. S. (2014). Value attenuation and retail out-of-stocks: A service-dominant logic perspective. International Journal of Physical Distribution & Logistics Management, 44(1/2), 39–57.
Emmelhainz, M. A., Stock, J. R., & Emmelhainz, L. W. (1991). Consumer responses to retail stock-outs. Journal of Retailing, 67(2), 138–147.
Fisher, M., Gallino, S., & Li, J. (2018). Competition-based dynamic pricing in online retailing: A methodology validated with field experiments. Management Science, 64(6), 2496–2514.
Fitzsimons, G. J. (2000). Consumer response to stockouts. Journal of Consumer Research, 27(2), 249–266.
Gallino, S., & Moreno, A. (2014). Integration of online and offline channels in retail: The impact of sharing reliable inventory availability information. Management Science, 60(6), 1434–1451.
Ge, X., Messinger, P., & Li, J. (2009). Influence of soldout products on consumers’ choice. Journal of Retailing, 85(3), 274–287.
GfK Future Buy. (2016). Retrieved June 1, 2017, from https://www.gfk.com/landing-pages/landing-pages-us/futurebuy-2016-united-states/
Gruen, T. W., & Corsten, D. (2007). A comprehensive guide to retail out-of-stock reduction in the fast-moving consumer goods industry. Washington, D.C.: Grocery Manufacturers of America.
Gruen, T. W., Corsten, D., & Bharadwaj, S. (2002). Retail out-of-stocks: A worldwide examination of extent, causes and consumer responses. Washington, D.C.: Grocery Manufacturers of America.
Honhon, D., Gaur, V., & Seshadri, S. (2010). Assortment planning and inventory decisions under stockout-based substitution. Operations Research, 58(5), 1364–1379.
Huang, Y., & Zhang, Y. C. (2015). The out-of-stock (OOS) effect on choice shares of available options. Journal of Retailing, 92(1), 13–24.
IRI. (2017). E-commerce: Build, drive and earn e-commerce growth for retail success. Retrieved from www.iriworldwide.com
Jain, A., Rudi, N., & Wang, T. (2015). Demand estimation and ordering under censoring: Stock-out timing is (almost) all you need. Operations Research, 63(1), 134–150.
Jing, X., & Lewis, M. (2011). Stockouts in online retailing. Journal of Marketing Research, 48(April), 342–354.
Kök, G. A., & Fisher, M. (2007). Demand estimation and assortment optimization under substitution: Methodology and application. Operations Research, 55(6), 1001–1021.
Lee, J., Gaur, V., Muthulingam, S., & Swisher, G. F. (2016). Stockout-based substitution and inventory planning in textbook retailing. Manufacturing & Service Operations Management, 18(1), 104–121.
Musalem, A., Olivares, M., Bradlow, E. T., Terwiesch, C., & Corsten, D. (2010). Structural estimation of the effect of out-of-stocks. Management Science, 56(7), 1180–1197.
Sloot, L. M., Verhoef, P. C., & Franses, P. H. (2005). The impact of brand equity and the hedonic level of products on customer stock-out reactions. Journal of Retailing, 81(1), 15–34.
Verhoef, P. C., & Sloot, L. M. (2006). Out of stock: Reactions antecedents, management solutions, and a future perspective. In K. Manfred & K. Mantrala Murali (Eds.), Retailing in the 21st century (pp. 239–254). Berlin: Springer.
Vulcano, G., van Ryzin, G., & Ratliff, R. (2012). Estimating primary demand for substitutable products from sales transaction data. Operations Research, 60(2), 313–334.
van Woensel, T., van Donselaar, K., Broekmeulen, R., & Fransoo, J. (2007). Consumer responses to shelf out-of-stocks of perishable products. International Journal of Physical Distribution and Logistics Management, 37(9), 704–718.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Corsten, D., Gruen, T. (2019). Online Availability. In: Gallino, S., Moreno, A. (eds) Operations in an Omnichannel World. Springer Series in Supply Chain Management, vol 8. Springer, Cham. https://doi.org/10.1007/978-3-030-20119-7_7
Download citation
DOI: https://doi.org/10.1007/978-3-030-20119-7_7
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-20118-0
Online ISBN: 978-3-030-20119-7
eBook Packages: Business and ManagementBusiness and Management (R0)