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Does Travel Time to Stores Matter? The Role of Merchandise Availability

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  • Grewal, Dhruv
  • Kopalle, Praveen
  • Marmorstein, Howard
  • Roggeveen, Anne L.

Abstract

Retailers generally attract consumers to further locations by offering discounted merchandise. We suggest an alternative strategy is to increase the availability (or certainty) of finding the merchandise at their store (i.e., reduce stock-outs). We conduct three experiments to highlight that consumers view travel time more adversely when there is uncertainty about merchandise availability. We also demonstrate that the negative effects associated with uncertainty around merchandise availability and travel time can be mitigated through the use of in-stock guarantees.

Suggested Citation

  • Grewal, Dhruv & Kopalle, Praveen & Marmorstein, Howard & Roggeveen, Anne L., 2012. "Does Travel Time to Stores Matter? The Role of Merchandise Availability," Journal of Retailing, Elsevier, vol. 88(3), pages 437-444.
    • Handle: RePEc:eee:jouret:v:88:y:2012:i:3:p:437-444
    DOI: 10.1016/j.jretai.2012.03.002
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    Cited by:

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    2. Gheibi, Shahryar & Fay, Scott, 2021. "The impact of supply disruption risk on a retailer’s pricing and procurement strategies in the presence of a substitute product," Journal of Retailing, Elsevier, vol. 97(3), pages 359-376.
    3. Stanley Frederick W. T. Lim & Elliot Rabinovich & Sungho Park & Minha Hwang, 2021. "Shopping Activity at Warehouse Club Stores and Its Competitive and Network Density Implications," Production and Operations Management, Production and Operations Management Society, vol. 30(1), pages 28-46, January.
    4. Melis, Kristina & Campo, Katia & Breugelmans, Els & Lamey, Lien, 2015. "The Impact of the Multi-channel Retail Mix on Online Store Choice: Does Online Experience Matter?," Journal of Retailing, Elsevier, vol. 91(2), pages 272-288.
    5. Hietanen, Joel & Mattila, Pekka & Schouten, John W. & Sihvonen, Antti & Toyoki, Sammy, 2016. "Reimagining Society Through Retail Practice," Journal of Retailing, Elsevier, vol. 92(4), pages 411-425.
    6. Chang Hwan Lee & Tsan‐Ming Choi & T. C. Edwin Cheng, 2021. "Operations strategies with snobbish and strategic consumers," Naval Research Logistics (NRL), John Wiley & Sons, vol. 68(3), pages 327-343, April.
    7. Timothy J. Richards & Stephen F. Hamilton, 2022. "Inventory management and loss in beer retailing," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 461-485, July.
    8. Rabinovich, Elliot & Chenarides, Lauren & Richards, Timothy J., 2024. "Inventory Competition and the Cost of a Stockout," 2024 Annual Meeting, July 28-30, New Orleans, LA 343649, Agricultural and Applied Economics Association.
    9. Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.

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