The Mechanisms through Which Attributions for New Product Out-of-Stock Affect Consumer Compensatory Consumption

Abstract

The widespread application of artificial intelligence, such as machine learning, deep learning and ChatGPT, has sharply reduced the incidence of new product shortages and stockouts. However, it has not eliminated them or their consequences. Although there has been abundant prior research on product out-of-stock and compensatory consumption respectively, few studies have explored how attributions for new product out-of-stock impact consumer compensatory consumption, especially how the effects of algorithm-error attribution and human-error attribution differ on consumer compensatory consumption. This gap has held back the development of theory on new product outof-stock and compensatory consumption and has also limited the practical guidance available to manufacturers, consumers, and regulators. Drawing on the theory of perceived control and conspiracy theory, this paper develops a moderated mediation model to explain how and under what conditions attributions for new product out-of-stock influence consumer compensatory consumption. The model is tested through a field survey and three experiments. The field survey examines the direct effect of attributions for new product out-of-stock on compensatory consumption. Experiment 1 tests the robustness of this effect and investigates the proposed mediating mechanisms. Experiment 2 examines the boundary conditions of these mechanisms and rules out plausible alternative explanations. Experiment 3 further establishes the robustness of both the mediating mechanisms and their boundary conditions, while confirming that other potential explanations do not account for the findings. The results yield three main conclusions. Firstly, attributions for new product out-ofstockinfluence consumer compensatory consumption: algorithmic-error attributions are more likely to trigger such consumption than human-error attributions. Secondly, lack of control and belief in conspiracy theories jointly mediate this relationship. Thirdly, consumers’ situational and dispositional persuasion knowledge each moderate the effects of attributions for new product out-of-stock on lack of control and belief in conspiracy theories. Persuasion knowledge also determines which mediating mechanism dominates. Among consumers with greater persuasion knowledge, lack of control is more likely to be the dominant mediator; among those with less persuasion knowledge, belief in conspiracy theories is more likely to dominate. None of psychological envy, task completion, psychological disgust, or anticipated regret provides a viable alternative explanation. These findings deepen and extend theories of new product out-of-stock and consumer compensatory consumption, while also contributing to the theory of perceived control, conspiracy theory, and persuasion knowledge theory. They also offer important managerial implications for manufacturers managing new product out-of-stock, consumers responding to them, and regulators overseeing the market.

Keywords

attributions for new product out-of-stock (ANPO) / lack of control (LoC) / belief in conspiracy theories (BCT) / persuasion knowledge / consumer compensatory consumption (CCC)

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