Understanding Consumer Reactions to Assortment Unavailability

2.3.3 The interaction of hedonic level and brand equity on OOS reactions
Two main rationales exist for a moderating effect of the hedonic level of a product on the effect
of brand equity in OOS reactions. First, hedonic products offer more opportunities to
differentiate the brand in consumers’ minds than do utilitarian products (Keller 2002; Rossiter
and Percy 1997). In utilitarian product groups, brands mainly are differentiated by product
quality. In hedonic product groups, however, emotional and symbolic aspects play an important
role in positioning the brand. Strong hedonic brands, such as Coca-Cola, Budweiser, and
Marlboro, have built dominant and relevant association networks in many consumers’ minds.
Due to the stronger position of high-equity brands in hedonic product categories, the effect of
brand equity on brand or store switching should be greater in hedonic categories than in
utilitarian categories.
Second, high-equity brands in hedonic categories usually provide more items on the shelf
relative to high-equity brands in utilitarian categories. For example, in a utilitarian category like
milk, there are only a few items for the leading brand, whereas consumers may choose among
many sizes and flavors (e.g., regular, vanilla, cherry) of leading brands in a hedonic product
group like cola. This provides the consumer with more switching alternatives of the same brand,
which may lead to increased item switching. In addition, consumers have a greater need for
variety in hedonic categories than in utilitarian categories (Van Trijp, Hoyer, and Inman 1996)
and therefore may be more willing to switch to another size or flavor. Thus, the probability that
consumers will switch items is higher for high-equity brands in hedonic product groups than for
high-equity brands in utilitarian product groups. In the same fashion, the greater availability of
items of the same brand leads to less postponement for high-equity brands in hedonic product
groups than for high-equity brands in utilitarian product groups.
H3a: The hedonic level of a product group increases the negative effect of brand equity on the
probability of brand switching.
H3b: The hedonic level of a product group increases the positive effect of brand equity on the
probability of store switching.
H3c: The hedonic level of a product group increases the positive effect of brand equity on the
probability of item switching.
H3d: The hedonic level of a product group decreases the positive effect of brand equity on the
probability of postponing.
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