Consumer responses to out-of-stock situations of preferred hair care brands: a case of the fast-moving consumer goods industry within a South African context

Abstract

The fast-moving consumer goods industry is one of the most profitable global industries, and therefore it is important that this industry remains profitable (Roubini, 2010). Out-ofstock situations have the potential to negatively affect the profitability of this industry. These situations have been previously researched, although not in a South African context, with regards to fast-moving consumer goods. The research problem explores how the majority of South African consumers respond when faced with an out-of-stock situation of their preferred hair care brand, and the implications of these responses? The results of this study can be used to possibly prevent the problem of these out-of-stock situations. Two theoretical frameworks were used for this study. Firstly, The Theory of Reasoned Action was explored due to two primary factors of this theory, namely, Attitudes towards behaviour and subjective norms about behaviour (Fishbein and Ajzen, 1975). Secondly, The Engel-Blackwell-Miniard Consumer Decision Model was used as a model on which to base concepts such as the decision process, environmental variables that influence the decision process and individual variables that influence the decision process. In order to collect the necessary data for this study, a questionnaire was constructed and was distributed to 100 South African consumers. A key finding of this study is that 64% of respondents identified that they would switch to another hair care brand if their preferred brand was out-of-stock.