The impact of loyalty to the reaction of consumers in situation of lack of supplies

Abstract

In the conditions of growing competition, retail companies seek to minimize the efforts of consumers in the purchase process. In addition to the affordable price offer, one of the main demands placed upon them refers to the provision of adequate levels of product availability. However, the out-of-stock still remains one of the most common problems, not only for consumers, but for retailers and their suppliers, as well. As effects of this problem primarily depend on consumer reactions, special attention is dedicated to the factors that affect them. In this regard, in the article the emphasis is on the impact of loyalty on two groups of consumers' reactions in OOS situations. The results have shown that this factor has a positive impact on consumers' decisions to realize the purchase, despite the unavailability of the desired product. Therefore, in order to reduce the negative effects of the out-of-stock problem, retail companies need to focus on customer loyalty, factors that influence it and the effects that it produces.

Keywords

• out-of-stock
• consumer reaction
• loyalty
• retail store