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Article in The International Review of Retail Distribution and Consumer Research · July 2011
DOI: 10.1080/09593969.2011.578793
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Introduction
Many consumers enter retail stores with a strong idea of what to buy under the
influence of media advertisements and choose their preferred brands. Others enter
stores without a strong preference toward any specific brand and can easily change
their preferences inside stores. A choice created with these kinds of shopping
behaviors inside the retail stores are defined as ‘compromised demand’ for frequently
purchased products (FPPs) and is an indispensable part of push strategy
conceptualization (Farris, Olver, and DeKluyver 1989; Reibstein and Farris 1995).
This compromised demand conceptualization indicates the importance of product
availability and in-store operations influence on consumers’ final purchase decisions.
Consumers with unmodified preferences are more likely to be influenced by
available brands in out-of-stock (OOS) situations. Srinivasan, Chan, and Chang
(2005) note:
*Email: kucuku@cwu.edu
This definition takes only product availability into consideration and does not
totally focus on availability of possible in-store sales supports. However, push
strategies are conceptualized as the combination of ‘product availability’ and ‘in-store
merchandising’, or alternatively Push ¼ (product availability) 6 (in-store merchan-
dising) in the retailing literature (Farris, Olver, and DeKluyver 1989; Reibstein and
Farris 1995). In other words, if a product is available at the retail spaces at the right
time with a significant amount of in-store merchandising support, which might better
define the push strategy’s success and perhaps push-based brand awareness (PBA).
If product availability goals cannot be achieved, then consumers might prefer to
pick the available close substitutions in the same retail store. This is broadly
discussed in OOS literatures (Schary and Christopher 1979; Emmelhainz,
Emmelhainz, and Stock 1991; Verbeke, Farris, and Thurik 1998; Campo,
Gijsbrechts, and Nisol 2000; Kucuk 2004, 2008; Sloot, Verhoef, and Franses 2005;
Fernie and Grant 2008; Aastrup and Kotzab 2010). The aforementioned push
equation defines the success of the push strategy for the available brands, as opposed
to those that consumers might be willing to switch to or compromise for in the OOS
situation. This is generally not studied broadly in the literature. Therefore, a
theoretically extended definition of PBA is necessary and is developed in this
study’s context as follows: ‘available brand’s ability to create consumer awareness
with the support of retailer’s in-store merchandising efforts in the situation of
consistent unavailability of the searched item at the same retail store/setting over
time.’
In this context, no detailed study defines push-based awareness and investigates
the role of such PBA on brand building as an alternative approach. This study is the
first of its kind reconceptualizing push-based awareness with related literature. It
questions how much awareness available brands gain when an alternative brand is
not available. It considers brand awareness erosion in the OOS of favorable/searched
item in the stores. This study also reviews the consumer decision dynamics or
effectiveness of in-store merchandising efforts. These points are generally left
unanswered in the literature and need more attention to shed light on both OOS and
brand awareness research. As a result, the aforementioned relationships and
conceptualization might introduce approaches as to maximizing PBA productivity
for retailers struggling with such hidden OOS costs.
Brand awareness
In branding literature, brand awareness is one of the major antecedents and
components of brand loyalty and brand equity. As brand awareness is potentially
the major reason behind consumer repeat purchase decisions for FPPs (Hoyer and
Brown 1990; Srinivasan, Chan, and Chang 2005), brand equity products reflect
higher market share growth, especially when supported with reminder advertising
(Aaker 1991; Percy and Rossiter 1992; Aaker 1996; Yoo, Donthu, and Lee 2000;
Srinivasan, Chan, and Chang 2005). It follows that unavailability of a brand could
hurt the consumer levels of both brand loyalty and brand equity. PBA importance
might be more important than brand loyalty and equity for FPPs, as discussed by
Christopher (1997) as follows:
‘. . . the supplier is now faced with a buyer who is much more demanding and less easily
persuaded by marketing ‘‘hype’’. One consequence of this change is the gradual decline
The International Review of Retail, Distribution and Consumer Research 203
in brand loyalty in many markets. Brand loyalty has been replaced by brand preferences.
What this means is that the buyer may prefer to buy a particular product from a
particular supplier for a variety of reasons, e.g. physical characteristics, attributes,
convenience, etc. However, this is not the same as loyalty. If, for example, a product is
out-of-stock on the shelf, is the shopper willing to take another brand? Often they are.’ (p.
3) [Emphasis added]
‘. . . remembering the brand name is not necessary since the brand awareness may proceed
by brand recognition. In other words, when a brand is recognized at point of purchase,
brand awareness does not require brand recall. This is a key point in the consideration of
brand require brand recall. Brand recognition and brand recall are two separate types of
brand awareness. The difference depends upon the communication effect that occurs first in
the buyer’s mind: category need or brand awareness’ (p. 264–5) [Emphasis added].
‘Existing customers and dealers will enhance recognition merely by being there [. . .]
users will become aware of the product just by seeing it. Further, this type of exposure –
actually seeing it ‘‘in action’’ or even on a retailer’s shelf –will be much more vivid and
have more impact than only seeing an ad several times.’
push strategies such as product availability and in-store merchandising efforts. This
is discussed by Percy and Rossiter (1992, 265) as follows:
‘Shoppers rely upon visual reminders of their needs as they scan the packages on the
shelf and brands are recognized. Clearly, then, when purchase selections rely upon
recognition, advertising should feature the package as it will be seen in the store.’
‘Recognition of the brand reminds me of category needs . . . a brand may actually fail a
recall test, yet be recognized in the store at the time of the purchase decision and bought’
[Emphasis added]
Coates, Butler, and Berry (2004) also indicated that implicit memory might play an
important role particularly in consumers’ low-risk product (or FPPs in this study’s
context) purchases. More importantly, the authors indicated that when product is not
available (e.g., sold out, wrong size, etc.) on a shopping occasion, priming or implicit
memory might directly operate on consumer choices (Coates, Butler, and Berry 2004,
1209). Thus, brand recognition of available brands in previous OOS situations for a
searched item might trigger a collected implicit memory about available brands during
the consistent OOS. This also can be used as an indicator of the ability of distribution or
product availability to create brand awareness, recently conceptualized as ‘availability
awareness (AA)’ by Kucuk (2008, 414) as follows:
‘the ability of the available brand to create awareness in consumers’ eyes over time when
experiencing consistent OOS of a brand’
If retailers successfully manage and control the duration of OOS and in-store
merchandising efforts, the brand awareness level created by PBA might be pulled to
higher TOMA levels in FPP consumption. This increases the importance of retailers’
role on enhancing and reaching higher levels of TOMA through PBA. Such retail
control factors need to be investigated closely.
Figure 1. Algorithm for consumer behaviors in OOS situation. Note: Dotted lines indicate
consumer’s behavioral responses to the OOS item as also discussed in OOS literature.
The International Review of Retail, Distribution and Consumer Research 207
real damage to retail sales (Gruen, Corsten, and Bharadwaj 2002). In general, 50%
of products in an OOS remain unavailable for more than 24 hours, 25% are OOS
between 8 and 24 hours, and 20% of OOS items were replenished in fewer than 8
hours. However, note that the duration of OOS for perishable products or high-
velocity items such as promoted items could be particularly shorter on average;
therefore, temporary unavailability is used in general terms in the context of this
study.
This temporary unavailability does not generally deeply influence consumer
loyalty toward brands (Motes and Castleberry 1985). However, if the unavailability
continues over an extended period, generally reflecting retailer and manufacturer
stocking decisions, significant decreases in consumer brand loyalty to the OOS item
is observed (Walter and Grabner 1975; Verbeke, Farris, and Thurik 1998). The
longer the brand’s OOS, the greater the decrease in brand loyalty and the higher the
AA and PBA of alternative brands in the store.
If the consumer chooses to switch the OOS item with an available one, OOS will
surely damage brand loyalty toward the OOS item, and in some cases it could even
result in the first exposure to a competitive brand – with more lasting effects (Vuyk 2003,
55). On the other hand, store loyal consumers sometimes may not even observe the
OOS situation (Schary and Christopher 1979), and might not have time sensitivity
regarding the OOS item. Potentially, strong store loyal consumers are completely under
the influence of the alternative brand’s AA and PBA, especially for FPPs.
consideration set. The consumer’s choice finally might be compromised in the store.
With that, AA and PBA transform to TOMA, completing consumer preference
modification in the retail store.
The figure developed in Figure 2 resembles a natural exponential function. Thus,
a mathematical explanation of the proposed PBA model can be developed in light of
the aforementioned discussions as follows:
PBAb ¼ a eðIsMt Þ 1
If brand is OOS, PCVt will equal 0 (zero), then (17PCVt) will equal 1 and PBAa will
equal b (which is TOMA).
a might be used as an indictor of store loyalty, which might also indicate
consumers’ in-store merchandising sensitivity (0 5 a 5 1).
Possible implications
The introduced PBA concept and model can provide various implications and
opportunities for both manufacturers and retailers. Such possible implications and
the conceptual contribution of this newly introduced PBA concept can be discussed
as follows:
at increasing brand awareness – both TOMA and AA. Also indicated in OOS
literature, a favored consumer decision involves picking from the same brand’s
different sizes in OOS if a consumer is highly brand loyal. Thus, if retailers stock
more options (especially different sizes of constant OOS item), they can take
advantage of OOS items previously established TOMA with AA and PBA. This, in
turn, might create a synergy effect in brand awareness levels and manufacturers’
product line extension efforts. In this context, current models for forecasting new
product sales use four basic components: awareness, distribution, trial, and repeat
rates. Generally, these are estimated independently and the assumption is that
awareness is driven by advertising and consumer promotion. However, distribution
can also create both awareness and the substitute recognition. This issue might also
enhance the important role of implicit memory to create PBA, addressed by Coates,
Butler, and Berry (2004, 1209) as follows:
‘. . . to bias selection on the basis of one recent exposure should be of some concern to
marketers and companies who spend huge sums of money on advertising campaigns in
the hope of building strong preferences for their brands. Also, even if the role of implicit
memory is often limited to aiding transition of brand names into individuals’
consideration sets, the importance of this should not be underestimated.’
Thus, PBA can be an effective brand extension tool for manufacturers if they are
facing with constant OOS problems.
Conclusions
This study introduces a new brand awareness conceptualization; ‘PBA’ in the light of
available retailing, distribution, and branding literature. Although, previously, push-
based awareness is discussed in a narrower context (with only brand/product
availability and distribution – AA), this study extends this definition by adding
available brands’ in-store merchandising into such conceptualization. This study also
sheds light on the dimensions of push-based awareness to develop better strategies at
overcoming possible OOS costs and addresses problems occurring both inside and
outside the retail stores.
Obviously, OOS is at the heart of the PBA conceptualization. And also, it is clear
that there is no perfect tool or approach to fix OOS problems and lower many of the
hidden OOS costs in real time in retail stores for both manufacturers and retailers.
However, investigation and a closer look at consumer behavior in OOS situations
can help companies to develop their own solutions how to reduce such negative
effects in OOS situation. Thus, understanding this newly introduced PBA concept
can also eventually help retailers and manufactures to control of their understocking
costs, to generate and manage store and in-store traffic, to build retail brand (private
label) awareness and equity, and finally to organize manufacturers’ brand extension
efforts. Thus, the conceptualization of PBA and discussion of how PBA is utilized in
retailers and manufacturers operations in OOS situations are necessary and some
occasions are indispensable.
Although this study introduces this new brand awareness model and concept,
there are still some questions to answer. A major question addressed by retailing
scholars in the future might be ‘Are the effects of availability on awareness and
recognition of the same order in magnitude as the effects of advertising and
consumer promotion?’ There is no clear distinction as to how this kind of brand
212 S.U. Kucuk
Acknowledgments
The author appreciates comments by Paul W. Farris and Jesper Aastrup on the early version
of this paper.
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