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Explaining customers' switching patterns to brand delisting

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  • Wiebach, Nicole
  • Hildebrandt, Lutz

Abstract

Delisting is frequently used by retailers to strengthen their negotiating position against manufacturers. However, both parties have to consider the risk of potential reactions when customers are faced with a reduced or modified assortment and thus, different choice. This research investigates customers' switching behavior if a brand is delisted by taking into account context theory. The results of two real-life quasi-experiments reveal that customer responses depend significantly on the context and that manufacturers may encounter substantially larger losses than retailers. Two further online experiments support the hypotheses on the existence of negative context effects for brand removals. Managerial implications can be derived and recommendations for further research are developed.

Suggested Citation

  • Wiebach, Nicole & Hildebrandt, Lutz, 2012. "Explaining customers' switching patterns to brand delisting," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 1-10.
    • Handle: RePEc:eee:joreco:v:19:y:2012:i:1:p:1-10
    DOI: 10.1016/j.jretconser.2011.08.001
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    2. Tserenjigmid, Gerelt, 2019. "Choosing with the worst in mind: A reference-dependent model," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 631-652.
    3. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J. & Sethuraman, Raj, 2021. "What factors moderate the effect of assortment reduction on store switching? Insights and implications for grocery brands," Journal of Business Research, Elsevier, vol. 133(C), pages 98-115.
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    5. Mortimer, Gary & Weeks, Clinton S., 2019. "How unit price awareness and usage encourages grocery brand switching and expenditure," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 346-356.
    6. Diels, Jana Luisa & Wiebach, Nicole & Hildebrandt, Lutz, 2013. "The impact of promotions on consumer choices and preferences in out-of-stock situations," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 587-598.

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