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As a frequently observed business phenomenon, the use of product scarcity to improve a product’s market performance has received increasing attention from both academics and practitioners. The resulting literature has covered a wide variety of issues based on various theories, using different research methods, in a diverse range of settings. However, this diversity also makes it difficult to grasp the core themes and findings, and to see the outstanding knowledge gaps. This paper aims to review previous studies on the use of product scarcity in marketing and identifies new directions for future research.

A systematic review was conducted to identify and analyse 66 research papers published in business and management journals between 1970 and 2017.

The authors examined the underlying theories of scarcity-based marketing, and developed a conceptual framework that describes the key factors of product scarcity and how they influence both consumers and the market. They also highlighted some key achievements in modelling the processes involved in using product scarcity in marketing.

This analysis of the identified papers suggests that there are substantial gaps in our knowledge of this field, which opens up new paths for future research. For future research, the authors identified three directions aimed at: addressing the practical needs of firms in understanding product scarcity; guiding the implementation of scarcity-based strategies; and measuring, monitoring and predicting the level of product scarcity and its impacts during implementation.

Applying a middle-range theorizing to premises of signaling theory and the scarcity principle, this study aims to investigate the mechanisms and effects of different patterns of post-stockout disclosures that highlight the limited supply and high quality of a durable good on consumer satisfaction with the shopping experience and purchase intention, mediated by consumer perceived product scarcity.

The hypotheses are tested with two scenario-based experiments. The first experiment—a between-subjects design—explores the effect of post-stockout disclosures on consumers' perceived scarcity, satisfaction, and purchase intention. The second experiment – a within-subject design – examines the impact of time on consumer responses to stockouts.

Results indicate that perceived product scarcity mediates the relationship between post-stockout disclosures and consumer outcomes. Specifically, post-stockout disclosures present an indirect positive effect on consumer purchase intention, despite reducing satisfaction beyond the effects of the stockout. These results are consistent when disclosures are sent through multiple channels. Results also show that consumers' perceived scarcity and purchase intention decrease over time while dissatisfaction levels remain the same when stockouts persist.

Even though consumers will be dissatisfied upon experiencing a stockout, specific patterns of post-stockout disclosures can be a valuable strategy for consumer retention and lost sales prevention.

While recent consumer-centric supply chain management literature has investigated mitigation strategies of detrimental consumer response to stockouts, such as “save-the-sale” tactics and price discounts, the mechanisms and effects of different patterns of post-stockouts disclosures highlighting the limited supply and high quality of the product are yet to be investigated.

Intangible cultural heritage products (ICHP) in this paper refer to the products made with handicrafts listed as intangible cultural heritage. The purpose of this paper is to examine the effects of consumer cultural identity and consumer knowledge on purchase intentions of ICHP, as well as the role of the perceived scarcity for such effects.

Three between-participants experiments were conducted to investigate the effect of cultural identity on purchase intention of ICHP and the underlying mechanism of the effect.

The results show that cultural identity has a positive influence on ICHP purchase intention, and this effect is stronger for consumers with higher level of consumer knowledge. Furthermore, perceived scarcity underlies such effect, but the scarcity account holds only for handmade ICHP, not for machine-manufactured products.

The current research suggests that ICHP should remain handmade to preserve their scarcity as a distinctive feature. Additionally, business practitioners handling ICHP should target consumers of high cultural identity, and/or provide iconic cues to activate their cultural identity situationally. Furthermore, it highlights the importance of consumer education programs about ICHP-related knowledge in enhancing the cultural identity effect.

This paper explores systematically the conditions and process of consumers' responses toward ICHP for the first time. Besides, it builds on accessibility-diagnosticity framework and provides novel knowledge about the functioning of consumer cultural identity. It also enriches our understanding of perceived scarcity from the supply side.

The purpose of this research is to explore how experienced scarcity affects home country consumers' attitudes toward the firm engaging in cross-border philanthropy by analyzing perceived distributive justice as a mediating variable. This research also investigates the moderating factor of this effect to identify practical strategies for managers.

This research conducted one survey (Study 1) and three experiments (Studies 2–4) by manipulating scarcity to provide robust evidence for the influence of experienced scarcity on consumer perception of the company conducting cross-border philanthropy.

This paper provides empirical insights about the significant negative effect of experienced scarcity on consumer attitudes toward the firm engaging in cross-border philanthropy. It proposes that home country consumers with high versus low experienced scarcity show lower perceived distributive justice for cross-border philanthropy, which generates less favorable attitudes toward the firm. To alleviate the negative impact of experienced scarcity on consumers' perceptions of corporate reputation, providing donation amount comparisons between home and foreign countries has a significant moderating effect.

This paper provides several suggestions for marketers seeking cross-border philanthropy to improve consumers' attitudes toward the firm.

This paper enriches the literature on corporate social responsibility in the domain of cross-border philanthropy and explains contradictory findings on consumers' attitudes toward corporate cross-border philanthropy. Moreover, this study makes meaningful contributions to the scarcity and justice literature.

This chapter examines Karl Polanyi's critique of formalism in economics and his case for a more institutional economics based upon a reconstitution of the facts of economic life on as wide an historical basis as possible. The argument below reviews Polanyi's argument with regard to the relation between economic anthropology and comparative economics, the contrast between the formalist and substantive approaches to economic analysis, the notion of an economistic fallacy, the most important limitations of the conventional formalist economics approach, and the nature and import of the new departure that Polanyi envisioned.

The purpose of this paper is to evaluate the interaction between inventory availability (scarcity) and pricing levels (price-leadership (PL)), and its effect on product returns in the internet retail supply chain. Specifically, this paper investigates how supply chain managers can use inventory (seller-induced scarcity) and pricing (PL) levers to control product returns.

Empirical data of sales and product returns from an internet retailer is analyzed to identify the scale of the effect that product scarcity and PL has on product returns. These factors are considered in developing a sales-return process model which is used with empirical data in a simulation study. The study evaluates changes in product returns for different policy settings related to PL and inventory levels. Findings of the simulation study are validated using statistical analysis of empirical data.

PL and seller-induced product scarcity affect the rate of product returns; however, the scale of this effect depends on inventory and pricing decisions. The results identify an inflection boundary based on scarcity and PL levels which reverses this effect. This reversal is explained by underlying principles at play regarding buyers’ valuation of the sale and corresponding product attributes.

Supply chain managers in internet retail can leverage lower inventory under the seller-induced scarcity approach to improve revenues. However, reducing inventory levels beyond a threshold is counterproductive, due to an associated increase in product returns. Similarly, setting market competitive prices (PL) can help reduce product returns. Under the seller-induced scarcity condition, this effect is reversed for inventory levels below a threshold. Retailers can implement the methodology developed in this paper to identify the inventory-price threshold that can help increase revenues while keeping the rate of product returns at a manageable level.

This research extends prior work regarding the role of product scarcity and pricing on product returns and develops a deeper understanding of how these factors can be managed to control product returns in the internet retail setting.

Over the last few years, impacts of environmental variability on population migration have been an increasing concern over the world. Estimates have suggested that between 25 million and 1 billion people could be displaced by climate change over the next 40 years. Though it is very difficult to delineate the specific drivers behind human migration, an attempt has been made in this chapter to discuss various reported cases across the world and more specifically, India where environment has played a major role in population movement. The chapter begins by outlining important definitions of migration and environmentally induced migration. It focuses on how environmental change and environmental hazards, especially water scarcity, contribute to human migration by exploring the mechanisms through which vulnerability and migration are linked. The process of movement and migration is usually subject to a complex set of push and pull forces, where push forces relate to the source area while pull factors relate to the destination. Emphasizing water scarcity as one of the prime push factors behind migration, various instances of population movement have been discussed from various parts of India. Understanding the importance of migration in development of a sustainable society, the chapter identifies various gaps that need to be addressed, which, in turn, will help in incorporating environment-induced migration into the decision-making process.

This study aims to examine whether, and how, perceived product scarcity strengthens the attitude–behavior relation in the case of sustainable luxury products.

Three online studies were conducted to examine the moderating role of perceived product scarcity on the attitude–willingness to pay (WTP) relationship in the case of sustainable luxury products. A preliminary study (n = 208) examined the existence of an attitude–WTP gap toward a sustainable luxury product (i.e. a bag). Study 1 (n = 171) investigated the moderating effect of perceived scarcity induced by a limited quantity message on the relationship between consumer attitude and the WTP for a sustainable luxury product (i.e. a pair of shoes). Study 2 (n = 558) replicated these findings using a different product category (i.e. a wallet) while controlling for demographic variables and examined the moderating role of consumer characteristics on the scarcity effect.

Consumers’ perceived scarcity for sustainable luxury products positively moderated the relationship between product attitudes and their WTP for the products. The moderating effect of perceived scarcity was significant for consumers regardless of their tendency toward socially responsible consumption and their preference for product innovativeness. Meanwhile, the scarcity effect was influenced by the consumers’ attitude toward the brand of sustainable products.

This research provides empirical evidence for marketers with clear managerial implications concerning how to immediately promote consumers’ acceptance of sustainable luxury products.

This study is the first to examine the role of scarcity strategy on strengthening the attitude–behavior relation for sustainable luxury products.

Experiential stores offer potential for emotional brand-consumer connections and word-of-mouth (WoM) generation. Past research links the lifecycle of such stores with perceived novelty, a defining characteristic that has not received sufficient recognition. Scarce products are identified as a promising strategy to enhance novelty perceptions. Additionally, the authors differentiate between electronic and interpersonal WoM, and consider need for uniqueness (NFU) as a relevant personality variable.

This study encompasses three experiments that seek to shed light on suggested relationships. The first two experiments explore the interplay between scarcity, perceived novelty, and WoM. Moving forward, the third study delves deeper into the matter, scrutinizing the conditions under which scarce products manifest their utility in experiential stores.

The findings indicate that incorporating scarce products can rejuvenate the novelty aspect of experiential stores and promote positive WoM outcomes. Additionally, including NFU as a personality variable presents a communication dilemma, as high NFU individuals tend to engage more in electronic WoM but less in interpersonal WoM. However, this relationship is contingent on circumstances, with high NFU individuals showing a greater inclination towards interpersonal WoM when the probability of being imitated is low.

This study offers practical guidance for brand managers aiming to sustain the appeal and success of their experiential stores, as well as for commercial real estate managers seeking to revitalize vacant spaces in the post-COVID-19 era.

This pioneering study investigates the role of perceived novelty and scarce products in experiential stores, aiming to identify optimal conditions for favorable consumer responses. It also contributes to research on the forward spillover effect and underscores the importance of interpersonal proximity in WoM investigations.