Family Size Underpins Grocery Shoppers' Behavioural Response to Stock-Outs

Abstract

Grocery shoppers were questioned about their response to the stock-out of their preferred item of milk and milk products. This measure was used as the dependent variable in a multinomial logit model with the independent variables being shopper dispositions, the contextual shopping situations, age, and household size. This study identified distinctive customer orientations that foreshadowed shoppers' buying a brand variant, buying another brand, and forgoing or postponing their purchase. A binary logit model then estimated the shoppers'orientations that motivated them to seek their preferred item from another store. It emerged that for most shoppers, their household size appeared to be a pressing variable that influenced the way they tackled the non-availability of their normal choice. Marketing literature postulates that large families invariably gravitate to larger pack sizes. Previous research also observes that brand loyalty is negatively correlated to household size. If their regular choice is not available, shoppers could, therefore, easily be driven to seek alternative brands. This study has identified that it would be useful for brand variants to offer shoppers sufficient consumption time till the products' use-by dates to encourage their purchase and prevent shoppers from crossing over to another brand or store. Central to the ample availability of consumption time is the capacity of channel members to support frequent deliveries of larger pack sizes in small lot quantities to the retail store.

Key Words:

• Stock-out
• retailers
• pack size
• household