International Journal of Transportation Engineering and Technology

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Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior

Received: 05 April 2019    Accepted: 30 May 2019    Published: 02 July 2019
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Abstract

The objective of this exploratory study was to examine stock-outs as an event and document their effects on changes in customer attitudes. A study containing both open-ended and close-ended elements was validated through a pilot study and used to collect data from 100 randomly selected participants spending at Shewa Shopping Center in Addis Ababa. The finding indicated that repeated stock-out experiences reduced customers’ loyalty to brand and retailer and caused customers to leave both retailers and brand. Participants indicated that stock-out effects can be shielded through improved inventory management and better customer service. Explicit recommendations involved apology, price discounts and free delivery. The finding of this study will enable retailers to gain deeper considerate of how stock-out affects customers shopping experiences and loyalty, and offer alleviation measures to improve both. In addition, the finding will provide a positive change to both customers and retailers, where shoppers will enjoy pleasant shopping experiences and retailers can maintain their competitive advantage via loyalty of their customer.

DOI 10.11648/j.ijtet.20190502.11
Published in International Journal of Transportation Engineering and Technology (Volume 5, Issue 2, June 2019)
Page(s) 25-29
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Out-of-Stock, Lean Inventory, Purchasing Behavior, Shewa Shopping Center

References
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Author Information
  • Department of Logistics and Supply Chain Management, Debre Berhan University, Debre Berhan, Ethiopia

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  • APA Style

    Dawit Hussein Ali. (2019). Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior. International Journal of Transportation Engineering and Technology, 5(2), 25-29. https://doi.org/10.11648/j.ijtet.20190502.11

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    ACS Style

    Dawit Hussein Ali. Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior. Int. J. Transp. Eng. Technol. 2019, 5(2), 25-29. doi: 10.11648/j.ijtet.20190502.11

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    AMA Style

    Dawit Hussein Ali. Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior. Int J Transp Eng Technol. 2019;5(2):25-29. doi: 10.11648/j.ijtet.20190502.11

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  • @article{10.11648/j.ijtet.20190502.11,
      author = {Dawit Hussein Ali},
      title = {Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior},
      journal = {International Journal of Transportation Engineering and Technology},
      volume = {5},
      number = {2},
      pages = {25-29},
      doi = {10.11648/j.ijtet.20190502.11},
      url = {https://doi.org/10.11648/j.ijtet.20190502.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijtet.20190502.11},
      abstract = {The objective of this exploratory study was to examine stock-outs as an event and document their effects on changes in customer attitudes. A study containing both open-ended and close-ended elements was validated through a pilot study and used to collect data from 100 randomly selected participants spending at Shewa Shopping Center in Addis Ababa. The finding indicated that repeated stock-out experiences reduced customers’ loyalty to brand and retailer and caused customers to leave both retailers and brand. Participants indicated that stock-out effects can be shielded through improved inventory management and better customer service. Explicit recommendations involved apology, price discounts and free delivery. The finding of this study will enable retailers to gain deeper considerate of how stock-out affects customers shopping experiences and loyalty, and offer alleviation measures to improve both. In addition, the finding will provide a positive change to both customers and retailers, where shoppers will enjoy pleasant shopping experiences and retailers can maintain their competitive advantage via loyalty of their customer.},
     year = {2019}
    }
    

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  • TY  - JOUR
    T1  - Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior
    AU  - Dawit Hussein Ali
    Y1  - 2019/07/02
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ijtet.20190502.11
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    T2  - International Journal of Transportation Engineering and Technology
    JF  - International Journal of Transportation Engineering and Technology
    JO  - International Journal of Transportation Engineering and Technology
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    PB  - Science Publishing Group
    SN  - 2575-1751
    UR  - https://doi.org/10.11648/j.ijtet.20190502.11
    AB  - The objective of this exploratory study was to examine stock-outs as an event and document their effects on changes in customer attitudes. A study containing both open-ended and close-ended elements was validated through a pilot study and used to collect data from 100 randomly selected participants spending at Shewa Shopping Center in Addis Ababa. The finding indicated that repeated stock-out experiences reduced customers’ loyalty to brand and retailer and caused customers to leave both retailers and brand. Participants indicated that stock-out effects can be shielded through improved inventory management and better customer service. Explicit recommendations involved apology, price discounts and free delivery. The finding of this study will enable retailers to gain deeper considerate of how stock-out affects customers shopping experiences and loyalty, and offer alleviation measures to improve both. In addition, the finding will provide a positive change to both customers and retailers, where shoppers will enjoy pleasant shopping experiences and retailers can maintain their competitive advantage via loyalty of their customer.
    VL  - 5
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