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Article
Publication date: 5 December 2016

Attractiveness of discount rate versus limited quantity: The moderating effect of temporal distance

Hye Kyung Park, Bong-Sup Shin and Jong-Ho Huh

This paper aims to examine how the temporal distance can influence the effect of the scarcity message. To demonstrate this effect, the authors use the limited-quantity…

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Abstract

Purpose

This paper aims to examine how the temporal distance can influence the effect of the scarcity message. To demonstrate this effect, the authors use the limited-quantity flash sales and compare two types of mixed promotion method comprising discount rate and limited quantity.

Design/methodology/approach

The results of the experiment reveal that consumers in the temporally distant condition have a relatively high-level construal of the limited-quantity flash sales and are more likely to value desirability (discount rate) over feasibility (limited quantity).

Findings

When the expected value is identical, consumers prefer limited-quantity flash sales with smaller limited quantity but higher discount rates. However, consumers in the temporally near condition have a relatively low-level construal of the limited-quantity flash sales and are more likely to value feasibility (limited quantity) over desirability (discount rate).

Originality/value

When the expected value is identical, consumers prefer limited-quantity flash sales with lower discount rates but larger limited quantity.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 10 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/APJIE-12-2016-001
ISSN: 2071-1395

Keywords

  • Limited-supply flash sale
  • Discount rate
  • Limited quantity
  • Desirability/feasibility
  • Temporal distance

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Article
Publication date: 3 August 2020

The drivers of desirability in scarcity marketing

Tser Yieth Chen, Tsai Lien Yeh and Ya Jou Wang

Marketers make an effort to affect consumers through scarcity marketing thus shaping the perception of scarcity and creating desirability for consumers. To expand the…

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Abstract

Purpose

Marketers make an effort to affect consumers through scarcity marketing thus shaping the perception of scarcity and creating desirability for consumers. To expand the scarcity-expensiveness-desirability model and to enhance insights for practical applications, this study modifies the causal relationship among two types of scarcity, three types of expansiveness and desirability.

Design/methodology/approach

This study surveyed 400 Taipei city residents who had purchase experience with luxury brands products in Taiwan. The study employed structural equation modeling as empirical analysis.

Findings

The empirical results show that limited-quantity scarcity main influences perceived social status and then affects desirability. The second path is that limited-quantity scarcity influences perceived uniqueness and then affects desirability. Therefore, perceived social status and perceived uniqueness dominate the majority of effects on desirability because they are the recognition of the individual compared to others, especially when applied to luxury goods.

Practical implications

Because limited-quantity scarcity has a greater impact on desirability than limited-time scarcity in the empirical results, marketers can adopt limited-quantity scarcity messages that are better than limited-time scarcity, to increase consumers’ desire to purchase luxury goods.

Originality/value

The first novelty of this study is dividing scarcity marketing into limited-quantity and limited-time scarcity in the scarcity-expensiveness-desirability model. This study extends expensiveness in the scarcity-expensiveness-desirability model with a complete demonstration, that is, perceived social status, perceived uniqueness and perceived value, which is the second novelty of this study.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/APJML-03-2020-0187
ISSN: 1355-5855

Keywords

  • Perceived uniqueness
  • Perceived value
  • Desirability
  • Limited-quantity scarcity
  • Limited-time scarcity
  • Perceived social status

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Article
Publication date: 26 June 2020

Limited edition packaging: objectives, implementations and related marketing mix decisions of a scarcity product tactic

Krisztina Rita Dörnyei

Marketing practitioners consider packaging as a promising marketing tool, but current academic research covers mostly regular packages. Filling this gap, this paper aims…

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Abstract

Purpose

Marketing practitioners consider packaging as a promising marketing tool, but current academic research covers mostly regular packages. Filling this gap, this paper aims to analyze why and how companies use limited edition packaging (LEP), which is defined as a scarcity product tactic, using the package exclusively to create a limited offer.

Design/methodology/approach

This study adopted a grounded theory methodology and used a qualitative collective case study design by analyzing 175 LEP launches in the beverage sector between 2000 and 2019.

Findings

The empirical-based conceptualization of LEP tactics provided here describes the crucial marketing dimensions in which strategic decisions are made regarding objective of release, implementation and related marketing mix decisions. Results show that LEP tactics serve parallel brands, sales and product strategy-related goals; LEPs are characterized by intensity, theme (occasion) and design characteristics, such as typicality, and marketers use various marketing mix combinations (i.e., pricing, distribution and advertising) in relation to the LEP offer.

Originality/value

To the best of author’s knowledge, it is the first conceptualization of this special type of scarcity tactic. This study also assists academics by providing an agenda for future research in this domain.

Details

Journal of Consumer Marketing, vol. 37 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/JCM-03-2019-3105
ISSN: 0736-3761

Keywords

  • FMCG
  • Package
  • Scarcity
  • Collective case study
  • Limited edition
  • Limited edition packaging

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Article
Publication date: 1 April 2019

Referral reward programs with scarcity messages on bank credit card adoption

Chanho Song, Tuo Wang and Michael Y. Hu

The purpose of this paper is to investigate how referral reward programs (RRPs) with scarcity messages influence consumer’ recommendation behavioral intentions about a…

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Abstract

Purpose

The purpose of this paper is to investigate how referral reward programs (RRPs) with scarcity messages influence consumer’ recommendation behavioral intentions about a bank credit card.

Design/methodology/approach

In total, 1,599 consumers are accessed through Amazon’s Mechanical Turk worker panel. The authors use general linear models, analysis of variance and analysis of covariance to test the proposed hypotheses.

Findings

The results showed that offering RRPs with scarcity messages increases a consumer’s behavioral intentions to recommend. The limited-quantity message in RRPs has the highest positive impact on consumers’ behavioral intentions.

Originality/value

No prior studies have addressed the relationship between referral rewards and scarcity messages in the bank credit card context. The study contributes to the understanding of the effectiveness of RRPs with scarcity message in improving consumer’s referral.

Details

International Journal of Bank Marketing, vol. 37 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/IJBM-12-2017-0260
ISSN: 0265-2323

Keywords

  • Behavioural outcome and intentions
  • Limited quantity
  • Limited time
  • Referral rewards
  • Scarcity messages

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Article
Publication date: 31 January 2020

The use of product scarcity in marketing

Xiaohui Shi, Feng Li and Pattarin Chumnumpan

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…

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Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Originality/value

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.

Details

European Journal of Marketing, vol. 54 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/EJM-04-2018-0285
ISSN: 0309-0566

Keywords

  • Product scarcity
  • Supply shortage
  • Limited edition
  • Literature review

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Article
Publication date: 8 May 2020

Store disorderliness effect: shoppers' competitive behaviours in a fast-fashion retail store

Merve Coskun, Shipra Gupta and Sebnem Burnaz

The purpose of this paper is to understand the effect of store messiness and human crowding on shoppers' competitive behaviours, in-store hoarding and in-store hiding…

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Abstract

Purpose

The purpose of this paper is to understand the effect of store messiness and human crowding on shoppers' competitive behaviours, in-store hoarding and in-store hiding, through the mediating effect of perceived scarcity and perceived competition.

Design/methodology/approach

2 (store messiness: messy × tidy) × 2 (human crowding: high × low) between-subject factorial experiment was conducted online to manipulate retail store atmospheric factors. A total of 154 responses were collected through Amazon MTurk. The hypotheses were analysed using ANOVA and PROCESS (Hayes, 2013) procedure.

Findings

Results suggest that store messiness and human crowding within a fast-fashion store lead to perception of scarcity and competition that further affects competitive behaviours. When consumers experience store messiness, they are likely to hide merchandise in store, thus making it inaccessible for other consumers. Further, when they experience human crowding in the store, they feel that the products will be gone immediately so they have a tendency to hoard them.

Research limitations/implications

This study examined the effects of scarcity perception by studying the case of fast-fashion retailers; generalizability needs to be established across different contexts.

Practical implications

Retailers by manipulating human crowding and store messiness can create a perception of scarcity in their stores, thus enhancing sales. However, they should also pay attention to deviant behaviours such as in-store hoarding and in-store hiding as these behaviours may decrease the store sales.

Originality/value

This research contributed to the retailing literature by finding a significant relationship between human crowding, store messiness and competitive behaviours through perceived scarcity and competition.

Details

International Journal of Retail & Distribution Management, vol. 48 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/IJRDM-06-2019-0193
ISSN: 0959-0552

Keywords

  • Store messiness
  • Human crowding
  • Perceived scarcity
  • Perceived competition
  • In-store hoarding
  • In-store hiding
  • Fast-fashion

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Article
Publication date: 20 August 2020

Supplier flexibility in the order-to-delivery process – a customer perspective

Helena Forslund, Patrik Jonsson and Stig-Arne Mattsson

Flexibility is one enabler of efficient use of resources and is therefore an antecedent to sustainability. The purpose of this article is to identify supplier flexibility…

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Abstract

Purpose

Flexibility is one enabler of efficient use of resources and is therefore an antecedent to sustainability. The purpose of this article is to identify supplier flexibility variables in, and related to, the order-to-delivery (OTD) process and categorize them into a framework, followed by empirically exploring the framework.

Design/methodology/approach

A perception-based survey was sent to Swedish purchasing managers. 289 responses were received. After descriptive gap analysis, exploratory factor analysis was applied to structure the responses into factors. This formed the basis for hierarchical linear regression analysis, explaining supplier flexibility.

Findings

A conceptual framework, specifying supplier flexibility into volume, delivery and information exchange dimensions and relating these dimensions to the OTD process, was developed. Significant negative gaps between actual and demanded volume flexibility and delivery flexibility were identified, while positive gaps were found for information exchange flexibility. The factor analysis revealed three factors. The regression analysis verified that OTD-related information exchange flexibility and OTD-related volume and delivery flexibility explain the variation in OTD-specific flexibility and are important antecedents for supplier flexibility in the OTD process.

Research limitations/implications

A contribution to research is the framework – with defined, related and empirically validated flexibility types.

Practical implications

The study proposes a perception-based way to capture supplier flexibility in the OTD process, which is of practical relevance when evaluating suppliers.

Originality/value

Identifying, conceptualizing and capturing types of supplier flexibility in the OTD process is new related to academic literature. Also the wide empirical study mapping supplier flexibility gaps is unique in its focus.

Details

International Journal of Physical Distribution & Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/IJPDLM-08-2019-0265
ISSN: 0960-0035

Keywords

  • Supplier flexibility
  • Order-to-delivery process
  • Framework
  • Survey

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Article
Publication date: 1 May 1978

Inventory Management Techniques

Richard A. Lancioni and Keith Howard

Inventory management is an extremely important function to any business, since inadequacies in control can result in serious problems. If inventories are managed in an…

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Abstract

Inventory management is an extremely important function to any business, since inadequacies in control can result in serious problems. If inventories are managed in an inefficient manner, it is likely that delays in production, dissatisfied customers, or curtailment of working capital will result.

Details

International Journal of Physical Distribution & Materials Management, vol. 8 no. 8
Type: Research Article
DOI: https://doi.org/10.1108/eb014432
ISSN: 0269-8218

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Book part
Publication date: 22 May 2015

Value for Whom? Exploring the Value of Informal Entrepreneurial Activities in Post-Socialist Contexts

Friederike Welter and Mirela Xheneti

The aim of this chapter is to advance an understanding of the value of informal entrepreneurial activities in relation to context using an institutional perspective…

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Abstract

Purpose

The aim of this chapter is to advance an understanding of the value of informal entrepreneurial activities in relation to context using an institutional perspective arguing that heterogeneity in institutional embeddedness affects the value individuals attach to entrepreneurial actions.

Methodology

We draw empirically on 100 interviews with individuals engaged in informal cross-border activities in eight EU border regions across four countries that have experienced changes of regulatory, economic and social nature.

Findings

The analysis offers important insights on how three institutional logics – market, state and community – guide entrepreneurial action at the micro-level and affect value creation. Our evidence supports the use of these activities to fulfil important economic functions and to nurture family and social relations in closely-knit communities. Differences in the embeddedness of individuals in each of these logics contributed to their perception of the value of their informal entrepreneurial actions along economic and social dimensions at the individual, community and society level and also at the short and long run.

Research Implications

Our main contributions lie in extending discussions of economic and social value of informal entrepreneurial activities and in providing a dynamic view of the value of informal entrepreneurial activities that account for changes or shifts in institutional logics, the responses they generate and the value created as a result.

Details

Exploring Criminal and Illegal Enterprise: New Perspectives on Research, Policy & Practice
Type: Book
DOI: https://doi.org/10.1108/S2040-724620150000005016
ISBN: 978-1-78441-551-8

Keywords

  • Entrepreneurial behaviour
  • informality
  • post-socialist context
  • value
  • institutions

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Article
Publication date: 1 December 2004

Dangerous goods regulations hit parcels networks

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Pigment & Resin Technology, vol. 33 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/prt.2004.12933fab.009
ISSN: 0369-9420

Keywords

  • Environmental health and safety,Hazardous materials

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