Abstract:

As a phantom decoy, out-of-stock alternative always appears in consumer’s decision context. Through three experiments, we found that non-promoted out-of-stock alternative can increase anticipated inaction regret to purchase similar alternative, and then decrease the choice deferral of similar alternative. Compared to promoted out-of-stock alternative, non-promoted out-of-stock alternative can decrease the choice deferral of similar alternative significantly, which is mediated by anticipated regret and valuation of similar alternative. The effect of out-of-stock situation type on choice deferral of similar alternative can be moderated by planning degree of purchasing out-of-stock alternative, and this moderating effect is mediated by regret of missing purchase.

Key words: out-of-stock alternative, anticipated regret, phantom decoy effect, choice deferral