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Despite the valuable contributions, our research is limited by several aspects which open avenues for further research. We test our hypotheses in four product categories and on the basis of reported behavior. This may decrease the external validity of our results as test persons might have had difficulties putting themselves into the fictitious OOS situation.

Although this data collection method has several advantages (e.g., minimization of white noise) and has been applied by previous OOS and context studies, further research has to generalize the results by examining more categories and in a real-world shopping situation.

This could be of particular interest in online shopping environments where demand is highly fluctuating (Rayport and Jaworski 2001) and stock-outs are ineluctable. As customers face smaller switching and information costs, they can be expected to exhibit different substitution patterns than in brick-and-mortar settings (Dadzie and Winston 2007). Moreover, our study only considers short-term OOS reactions. However, the assessment of permanent OOS-induced responses seems very interesting as damages to store and brand loyalty can only be recognized in the long-run and possibly after several OOS occasions. Since promotion proves to be an important driver of OOS responses, more research should be done to further analyze its influence. Finally, by combining research on context-dependent preferences and phantom alternatives, the study offers ample opportunities to further analyze prevailing context effects in situations of reduced choice set by varying the position of the unavailable product to test the potential effects on preference formation and choice decisions. Here, another interesting

direction to pursue would be the analysis of so-called N-phantoms (Gierl and Eleftheriadou 2005), which differ from the alternatives of the core choice set on a third dimension and might provoke distinct reaction and substitution patterns. One further issue worth investigating is how different reasons for the unavailability of the promoted product influence OOS reaction and the respective substitution behavior. Here, it would be imaginable to contrast OOS responses for stock-outs resulting from high and unforeseen demand with those that are the consequence of intended bait-and-switch techniques. Different psychological constructs like reactance (Brehm 1966) or an increase in attractiveness (Gea, Messinger, and Li 2009) could be used to further explain the findings.

APPENDIX

APPENDIX A

PREFERENCE BRANDS AS PHANTOM ALTERNATIVES (STUDY 1)

APPENDIX A1 CONTROL GROUP

APPENDIX A2 EXPERIMENTAL GROUP

APPENDIX B

EXPECTED CHOICE SHARES UNDER THE LUCE MODEL

)

EL(SS) - expected choice share of the similar substitute under the Luce Model in the second decision situation (P is out-of-stock),

O1(SS) - observed choice share of the similar substitute in the first decision situation, O1(DSn) - observed choice share of the dissimilar substitute n in the first decision

situation, n=(1,2),

O1(P) - observed choice share of the preference product in the first decision situation.

APPENDIX C

PROMOTION-INDUCED SHIFTS IN THE ATTRIBUTE SPACE (STUDY 2)

APPENDIX C1 SIMILAR SUBSTITUTE ON PROMOTION

APPENDIX C2 FAR SUBSTITUTE ON PROMOTION

APPENDIX C3 EXTREME SUBSTITUTE ON PROMOTION

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TABLES

TABLE 1

INITIAL CHOICE SETS

Experiment 1 Experiment 2 Experiment 3 Experiment 4

Detergent Orange juice Restaurant Hotel

(n = 451) (n = 793) (n = 878) (n = 1210)

Pricea Qualityb Pricec Qualityd Pricee Qualityf Priceg Qualityh

Brand A 6.69€ 90 1.28€ 80 24€ 8 120€ 8

Brand B 5.99€ 80 1.12€ 70 21€ 7 105€ 7

Brand C 3.49€ 50 0.80€ 50 12€ 4 60€ 4

Brand D 2.85€ 40 0.64€ 40 9€ 3 45€ 3

a Price for 18 loads, c price per liter, e price per meal including one drink, g price per night, including breakfast

b Quality was operationalized by quality points awarded by a product test foundation with regard to cleaning power, color protection and ecological ingredients (100-highest quality, 0-lowest quality).

d Quality was operationalized by quality points awarded by a product test foundation with regard to flavor, fruit juice content, sugar content, no harmful substances (100-highest quality, 0- lowest quality).

f Quality Ranking (10-highest quality, 0- lowest quality).

h Quality was operationalized by quality points awarded by an evaluation portal with regard to cleanliness, location and surrounding area, facilities, service and staff (10-highest quality, 0- lowest quality).

TABLE 2

INITIAL CHOICE (PREFERENCE PRODUCT, STUDY 1)

Experiment Group n Brand A

nominal (ratio)

Brand B nominal (ratio)

Brand C nominal (ratio)

Brand D nominal (ratio) Experiment 1

(detergent)

Control Group 224 18.3% (22.86) 36.6% (34.09) 37.9% (30.33) 7.1% (12.71) Experimental Group 227 15.0% (20.61) 40.5% (35.50) 36.1% (31,81) 8.4% (12.08) Experiment 2

(orange juice)

Control Group 336 52.4% (47.13) 33.6% (30.05) 10.7% (15.40) 3.3% (7.43) Experimental Group 457 49.5% (45.26) 33.5% (32.14) 13.3% (15.15) 3.7% (7.45) Experiment 3

(restaurant)

Control Group 455 13.2% (18.44) 40.0% (36.29) 39.8% (33.00) 7.0% (12.26) Experimental Group 423 12.8% (17.67) 43.5% (34.92) 36.6% (34.72) 7.1% (12.69) Experiment 4

(hotel)

Control Group 461 4.8% (9.41) 22.8% (23.35) 41.6% (35.51) 30.8% (31.73) Experimental Group 749 5.2% (9.31) 28.3% (27.03) 37.1% (34.32) 29.4% (29.33)

TABLE 3

1 figures in bold indicate that the effect is significant at p < .01and in the expected direction

TABLE 4

INITIAL CHOICE (PREFERENCE PRODUCT, STUDY 2)

Experiment Group n Brand A nominal (ratio)

Brand B nominal (ratio)

Brand C nominal (ratio)

Brand D nominal (ratio) Experiment 5

(detergent)

SS 438 13.7% (19.70) 37.2% (32.88) 40.0% (32.05) 9.1% (15.37) FS 260 11.5% (18.21) 37.3% (34.17) 39.2% (31.98) 11.9% (15.63) ES 262 15.3% (22.47) 37.0% (32.20) 38.5% (30.66) 9.2% (14.67)

Experiment 6 (hotel)

SS 235 3.8% (11.88 ) 31.9% (29.71) 40.0% (32.55) 24.3% (25.85) FS 230 3.5% (11.26) 36.1% (29.58) 34.3% (31.68) 26.1% (27.47) ES 190 7.4% (15.57) 30.5% (28.09) 33.7% (28.78) 28.4% (27.55)

TABLE 5

OBSERVED VERSUS EXPECTED CHOICE SHARES (SS, FS AND ES WITH ROTATING PROMOTION PRODUCT)

Experiment 1

a Similar substitute (SS) on promotion

b Far substitute (FS) on promotion

c Extreme substitute (ES) on promotion

nsnot significant

1 figures in bold indicate that the effect is significant at p < .01and in the expected direction

FIGURES

FIGURE 1

SIMILARITY EFFECT, ATTRACTION EFFECT AND COMPROMISE EFFECT

FIGURE 1.1 SIMILARITY EFFECT

FIGURE 1.2 ATTRACTION EFFECT

FIGURE 1.3 COMPROMISE EFFECT

FIGURE 2

NEGATIVE SIMILARITY EFFECT, ASYMMETRICALLY DOMINATING AND RELATIVELY SUPERIOR PHANTOM

FIGURE 2.1 NEGATIVE SIMILARITY EFFECT

FIGURE 2.2 ASYMMETRICALLY DOMINATING PHANTOM

FIGURE 2.3 RELATIVELY SUPERIOR PHANTOM

FIGURE 3

ASYMMETRICALLY DOMINATED AND RELATIVELY INFERIOR PHANTOM

FIGURE 3.1

RELATIVELY INFERIOR PHANTOM

FIGURE 3.2

ASYMMETRICALLY DOMINATED PHANTOM

FIGURE 4

ASYMMETRICALLY DOMINATED AND RELATIVELY INFERIOR DECOY

FIGURE 4.1

ASYMMETRICALLY DOMINATED DECOY

FIGURE 4.2

RELATIVELY INFERIOR DECOY

FIGURE 5

INITIAL ATTRIBUTE SPACE

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