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CONSUMER RESPONSE to STOCKOUTS in ONLINE APPAREL SHOPPING DISSERTATION Presented in Partial Fulfillment of the Requirements

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CONSUMER RESPONSE to STOCKOUTS in ONLINE APPAREL SHOPPING DISSERTATION Presented in Partial Fulfillment of the Requirements CONSUMER RESPONSE TO STOCKOUTS IN ONLINE APPAREL SHOPPING DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Mijeong Kim, M.S. * * * * * The Ohio State University 2004 Dissertation Committee: Approved by Professor Sharron J. Lennon, Adviser Professor Leslie Stoel Adviser Professor Nancy Stanforth College of Human Ecology Professor Michael Browne Copyright by Mijeong Kim 2004 ABSTRACT The primary goal of this research was to investigate how consumers respond to product unavailability from the perspective of discrepancy-evaluation theory of emotion. This research consists of two studies employing a randomized experiment using a mock website simulating online apparel shopping. In a 2 (timing of notification about stockout: before or after) x 2 (item preference: not preferred or preferred) x 2 (frequency of stockout: once or twice) complete between-subjects factorial design, Study 1 examined: (1) the effects of timing, preference, and frequency of product unavailability on negative emotion elicited, (2) structural relationships among negative emotion, perception of store image, decision satisfaction, and behavioral intent, and (3) the moderating role of timing, preference, and frequency on the process by which product unavailability influences consumer response. Eight hundred twenty female college students participated in the simulated online apparel shopping Web experiment for Study 1, in which they experienced a different level of product unavailability as a function of timing, preference, and frequency of product unavailability. In a one factor (managerial response) between- subjects design with four levels (standard, substitute, backorder, or financial response), Study 2 explored the effect of four retail management responses on consumer responses to stockouts. Two hundred thirty-four female college students participated in another ii simulated online shopping Web experiment developed for Study 2, in which they received one of the four managerial responses at the time they encountered stockouts. The findings from Study 1 revealed: (1) main effects for timing, preference, and frequency on negative emotion; (2) three two-way interaction effects for timing, preference, and frequency on negative emotion; (3) the effects of negative emotion on perception of store image, decision satisfaction, and behavioral intent; (4) the effect of negative emotion on behavioral intent mediated by perceptions of store image and decision satisfaction; (5) the varied relationship between store image and behavioral intent as a function of timing, preference, and frequency; and (6) the varied relationship between negative emotion and store image, store image and behavioral intent, and decision satisfaction and behavioral intent as a function of three two-way interactions among timing, preference, and frequency. The findings from Study 2 showed the effect of managerial response on negative emotion, perceptions of store image, and behavioral intent. The findings of these studies add to the extant literature on stockouts by providing (1) empirical support for the proposed model that illustrates the process by which product unavailability influences consumer response, (2) theoretical insight to understand the stockout phenomena from the perspective of the discrepancy-evaluation theory of emotion, and (3) retail management strategies that retailers can adopt to alleviate the negative impact of stockouts. iii Dedicated to my loving husband Kyuwoon Leon Hwang iv ACKNOWLEDGMENTS First and foremost, I owe special thanks to my adviser, Dr. Sharron Lennon for her invaluable advice, support, encouragement, and caring that has motivated me to successfully complete my graduate program. For the last eight years in my life, she has been the best teacher, mentor, and counselor. She has always been my inspiration and role model for striving for excellence in teaching, research, and everything else that I do and have done during time at this university. I am so grateful for having her in my life. I would also like to extend my sincere gratitude to my committee members for their guidance. Dr. Leslie Stoel has provided intellectual and emotional support throughout my doctoral program and valuable suggestions and comments for my dissertation. Her energy and excitement for my work has always encouraged me to take further steps in conducting research. Dr. Nancy Stanforth has shared her brilliant insight while providing valuable suggestions and constructive feedback during the completion of my dissertation. Dr. Michael Browne has taught me a great deal about structural equation modeling and has provided valuable feedback during the data analyses portion of my dissertation. His encouragement throughout quantitative my psychology minor program was very special and nurturing. My appreciation is also extended to Dr. Nancy Rudd for her guidance throughout my graduate program. She has always been a wonderful mentor for me. I am also v grateful to Dr. Gong-Soog Hong and Dr. Loren Geistfeld for their advice and encouragement during the course of my program and my job search. I would also like to thank my fellow graduate students for their intellectual and emotional support for the last two years: Hyejeong Kim, Wi-suk Kwon, Sejin Ha, Jiwon Seo, Jung-Hwan Kim, Jiyoung Lim, Young Ha, and Minjung Park. I especially thank my first, last, and the best roommate, Minjung Park, for her friendship and the overwhelming comfort she has given me during my last graduate year. My special thanks go to my family in Korea and my parents-in-law for their love, support, and prayers. Last, but not least, I thank my wonderful husband for his encouragement, support, and patience. He has provided me the strength I needed to complete this degree. Without his support, my successful completion of this dissertation was not possible. This dissertation was supported by the Alumni Grant for Graduate Research and Scholarship (AGGRS) from the Graduate School of The Ohio State University. This award made it possible for me to successfully collect the data for this dissertation. Finally, I thank God for guiding me all along. vi VITA June 7, 1971 ....................................... Born - Busan, Korea 1995 ................................................... B.S., Ewha Womans University Major: Clothing and Textiles Seoul, Korea 1997 – 1999 ....................................... Graduate Teaching and Research Associate Department of Consumer and Textile Sciences The Ohio State University, Columbus, Ohio 1998 ................................................... Technical Designer Intern, Abercrombie & Fitch Reynoldsburg, OH 1998 – 1999 ....................................... Freelance Sketcher, Lane Bryant Reynoldsburg, OH 1999 ................................................... M.S., The Ohio State University Major: Textiles and Clothing 1999 – 2001 ....................................... Technical Coordinator, Express, Inc. Columbus, OH 2001 – 2003 ....................................... Internship Coordinator Leadership Development Challenge Grant Graduate Research Associate Department of Consumer and Textile Sciences The Ohio State University 2002 ................................................... Technical Design Consultant, Express, Inc. Columbus, OH 2003 – 2004 ....................................... Doris M. and Clifford A. Risley Fellow College of Human Ecology The Ohio State University vii PUBLICATIONS Research Publication 1. Kim, M., & Lennon, S. (accepted for publication). The Effects of Customer’s Dress on Salesperson’s Service. Clothing and Textile Research Journal 2. Kim, M., & Lennon, S. (accepted for publication). Content Analysis of Diet Advertisements: A Cross-National Comparison of Korean and U.S. Women's Magazines. Clothing and Textile Research Journal 3. Kim, M., & Lennon, S. (2000). Television Shopping for Apparel in the U.S.: Effects of Perceived Amount of Information on Perceived Risks and Purchase Intentions. Journal of Family and Consumer Sciences Research, 28(3), 301 – 330. 4. Kim, M., & Lennon, S. (2003). The Effects of Visual and Verbal Information on Attitudes and Purchase Intent in Online Shopping: PART II, Abstract published in Proceedings of the International Textiles and Apparel Association (Online). 5. Kim, M., & Lennon, S. (2003). The Effects of Visual and Verbal Information on Attitudes and Purchase Intent in Online Shopping: PART I, Abstract published in Proceedings of the European Institute of Retailing and Services Studies Conference (p.54). 6. Kim, M., & Lennon, S. J. (1999). The Effects of Perceived Amount of Information on Perceived Risks and Purchase Intentions in Television Shopping, Abstract published in Proceedings of the International Textiles and Apparel Association (p.59). 7. Kim, M., & Lennon, S. J. (1998). The Effects of Customer’s Dress on Salesperson’s Service, Abstract published in Proceedings of the International Textiles and Apparel Association (p.95). 8. Kim, M., & Rudd, N. A. (June 1998). Historic Costume. A Multidisciplinary Conference on Holiday, Ritual, Festival, Celebration, & Public Display (pp.15) FIELD OF STUDY Major Field: Human Ecology Area of Specialization: Textiles and Clothing Minor Field: Quantitative Psychology viii TABLE OF CONTENTS Page Abstract ................................................................................................................................ii Dedication...........................................................................................................................iv
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