(The) impact of WOM, OL and intention on capacity-moderated purchasing

Abstract

For the last decade, Purchase intention is a robust metric in Marketing. The intent of a customer can make it very easy to exactly iterate what kind of goods and items a firm should have in stock. This study investigates the relationship between observational learning, word of mouth on intention as it is influenced by capacity. Also, it examines the impact of intention on purchase moderated by capacity. The capacity is more important when the firm cannot replenish its inventory after determining the initial stock level for a product. In this paper, we make an empirical analysis using a movie rental dynamic that contains the wishlist of their users with no inventory replenishment.