Skip to main content

Online Availability

  • Chapter
  • First Online:

Part of the book series: Springer Series in Supply Chain Management ((SSSCM,volume 8))

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

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   139.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   179.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   179.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 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. 2.

    https://consumergoods.com/cgts-top-100-consumer-goods-companies-2016.

References

  • Anderson, E., Fitzsimons, G., & Simester, D. (2006). Measuring and mitigating the costs of stockouts. Management Science, 52(11), 1751–1763.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Bell, D., Gallino, S., & Moreno, A. (2014). How to win in an omnichannel world. Sloan Management Review, 56(1), 45–53.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • Campo, K., Gijsbrechts, E., & Nisol, P. (2000). Towards understanding consumer response to stock-outs. Journal of Retailing, 76, 219–242.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Coca Cola Research Council. (1996). The retail problem of out of stock merchandise. Atlanta: Author.

    Google Scholar 

  • 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.

    Google Scholar 

  • Corstjens, J., & Corstjens, M. (1995). Store wars: The battle for mindspace and shelfspace. New York: Wiley.

    Google Scholar 

  • Cui, R., Zhang, D. J., & Bassamboo, A. (2019). Learning from inventory availability information: Field evidence from Amazon. Management Science, 65(3), 955–1453.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Emmelhainz, M. A., Stock, J. R., & Emmelhainz, L. W. (1991). Consumer responses to retail stock-outs. Journal of Retailing, 67(2), 138–147.

    Google Scholar 

  • 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.

    Article  Google Scholar 

  • Fitzsimons, G. J. (2000). Consumer response to stockouts. Journal of Consumer Research, 27(2), 249–266.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Ge, X., Messinger, P., & Li, J. (2009). Influence of soldout products on consumers’ choice. Journal of Retailing, 85(3), 274–287.

    Article  Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • Honhon, D., Gaur, V., & Seshadri, S. (2010). Assortment planning and inventory decisions under stockout-based substitution. Operations Research, 58(5), 1364–1379.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Jing, X., & Lewis, M. (2011). Stockouts in online retailing. Journal of Marketing Research, 48(April), 342–354.

    Article  Google Scholar 

  • Kök, G. A., & Fisher, M. (2007). Demand estimation and assortment optimization under substitution: Methodology and application. Operations Research, 55(6), 1001–1021.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • 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.

    Chapter  Google Scholar 

  • Vulcano, G., van Ryzin, G., & Ratliff, R. (2012). Estimating primary demand for substitutable products from sales transaction data. Operations Research, 60(2), 313–334.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Daniel Corsten .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

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

Publish with us

Policies and ethics