Understanding consumer's attitude towards retail store in stockout situations

Abstract

Purpose – This study aims to examine empirically how consumers' attitude towards retail stores gets affected by situational, consumer, store and product characteristic variables when they face out‐of‐stock situations. Design/methodology/approach – Survey method for data collection was used. Data were collected from a sample of 1,207 retail customers in India's unorganized retail sector across five product categories in Varanasi, India. Findings – Results showed that six of the independent variables considered, namely, shopping attitude of respondent, store loyalty (SL), perceived store prices, store distance, shopping frequency, and brand loyalty (in order of importance of impact) significantly influenced consumers' attitude towards retail store in out‐of‐stock. Research limitations/implications – Data were collected only for five product categories and for unorganized retail setting because of which results and findings are not generalizeable to beyond these boundaries. Practical implications – Implications of this for retailers and future research are discussed. Originality/value – Since attitudes towards retail outlets are very important in determining future SL and subsequent profitability, understanding of consumer store attitudes in negative events like stockout is importantly for retailers. The paper provides crucial insights to retailers by identifying independent variables that must be considered while designing their operations.