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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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    5. 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.
    6. Mayadunne, Sanjaya & Johar, Monica & Saydam, Cem, 2018. "Competitive store closing during an economic downturn," International Journal of Production Economics, Elsevier, vol. 199(C), pages 162-178.
    7. 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.
    8. 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.

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