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Article
Publication date: 7 January 2022

Jaewoo Park, Hyo Jin Eom and Charles Spence

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

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Practical implications

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

Originality/value

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

Details

Journal of Product & Brand Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 7 December 2021

Joshua Fogel and Marcelle Kim Setton

A number of types of scarcity messages are often used in Internet advertisements, but all these types have not been directly compared to each other.

Abstract

Purpose

A number of types of scarcity messages are often used in Internet advertisements, but all these types have not been directly compared to each other.

Design/methodology/approach

College students (n = 789) were surveyed about five advertising choices for luxury skin-care products consisting of scarcity messages of high-demand, low-stock, limited-time, countdown timer and regular advertising without any scarcity message. Outcomes were product classification attitudes of functional and symbolic and psychological attitudes of persuasion knowledge and advertising skepticism.

Findings

The study found that high-demand message had greater functional attitudes and greater symbolic attitudes than regular advertising. Limited-time message had greater symbolic attitudes than regular advertising. High-demand message had lower advertising skepticism attitudes than regular advertising.

Practical implications

The authors recommend that when a luxury skin-care product is in high demand, that marketers should use high-demand messages in their advertising. Marketers of luxury skin-care products may also benefit from using limited-time message advertisements.

Originality/value

This is the first study to directly compare the scarcity message advertising types of high-demand, low-stock, limited-time, countdown timer with regular advertising without any scarcity message.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 25 September 2020

Billy Sung, Siobhan Hatton-Jones, Min Teah, Isaac Cheah and Ian Phau

The purpose of this paper is to examine the perception of luxuriousness as a novel underlying mechanism of the shelf-based scarcity effect by using both…

Abstract

Purpose

The purpose of this paper is to examine the perception of luxuriousness as a novel underlying mechanism of the shelf-based scarcity effect by using both psychophysiological measures (Study 1) and self-reported measures (Study 2).

Design/methodology/approach

Two within-subject experimental designs were conducted to examine the effects of low, medium and high stock depletion levels (i.e. shelf-based scarcity) on consumer responses. In Study 1, facial expression analysis was used to examine consumers’ liking, and left frontal asymmetry brainwaves were used to examine consumers’ approach motivation as a proxy for purchase intention. Study 2 extended the findings with self-reported measures.

Findings

In Study 1, perceived product luxuriousness was found to underlie the shelf-based scarcity effect on facial expressions and left frontal asymmetry brainwaves after controlling for other previously proposed mediators (i.e. product popularity and quality). The shelf-based scarcity effect is only observed between low vs high stock levels, whereas moderate stock level depletion does not evoke the shelf-based scarcity effect. Study 2 used self-reported measures to replicate the effect of shelf-based scarcity on product luxuriousness. However, the findings demonstrated the limitation of self-reported measures to identify a significant spill-over effect of perceived luxuriousness to attitude.

Research limitations/implications

Extending previous literature that relied heavily on self-reported measures, the current research used psychophysiological methods to uncover perceived luxuriousness as a novel underlying mechanism for the shelf-based scarcity effect. Thus, the findings are not only the first to provide psychophysiological evidence of the shelf-based scarcity effect but also to validate perceived luxuriousness as an underlying mechanism of the shelf-based scarcity effect.

Practical implications

The current findings suggest that the shelf-based scarcity effect is only evoked by high (instead of moderate) levels of stock depletion. The study also shows that shelf-based scarcity does not necessarily signal product popularity, but instead it may serve as a cue of product luxuriousness. Adding to other manipulations of retail spaces that elicit luxury perception (e.g. artwork, sensory delight and themed store atmospherics), this implies that businesses are able to use shelf-based scarcity as a cue to enhance or complement the luxury image or the perception of the brand or product.

Originality/value

The current research is the first study to use psychophysiological techniques to examine perceived luxuriousness as an underlying mechanism of shelf-based scarcity. It also demonstrates that self-report measures are not sensitive to such an effect in comparison to psychophysiological techniques, explaining why perceived luxuriousness has not been previously found to be an underlying mechanism of shelf-based scarcity.

Details

European Journal of Marketing, vol. 55 no. 2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 13 May 2020

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…

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
ISSN: 0959-0552

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Article
Publication date: 3 August 2020

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…

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. 33 no. 4
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 20 February 2017

Tino Woschke, Heiko Haase and Jan Kratzer

This study deals with the impact of resource scarcity on the innovation performance of small- and medium-sized enterprises (SMEs). The purpose of this paper is to…

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Abstract

Purpose

This study deals with the impact of resource scarcity on the innovation performance of small- and medium-sized enterprises (SMEs). The purpose of this paper is to scrutinise whether resource scarcity among SMEs has an effect on their innovation performance.

Design/methodology/approach

The sample was based on panel data for 302 SMEs from the mechanical and electrical engineering sectors. Firms were divided into four groups by resource scarcity: human resource scarcity, financial resource scarcity, both types of resource scarcity and no resource scarcity. To test for significant inter-group differences in innovation performance, multivariate analysis of covariance and a multiple discriminant function analysis were carried out.

Findings

The results indicated that resource scarcity can have a positive effect on incremental but not radical innovation performance in SMEs. However, the authors found this to be true for financial resource scarcity only.

Research limitations/implications

These results may not be applicable to all SMEs, as the authors only focused on the industries of mechanical and electrical engineering. Future studies should focus on analysing the internal structures of SMEs that led to this study’s results. More research should also be conducted on ways that resource-limited SMEs can appropriately conduct radical innovations. Finally, resources should be made available for both practitioners and academics, explaining why the acquisition of resources is not always be the best option in response to limited resources.

Practical implications

These results indicate that resource-constrained SMEs, especially those that struggle with limited finances, should concentrate their innovation activities on incremental rather than radical innovations.

Originality/value

This study closes the knowledge gap as to whether it is beneficial for resource-limited SMEs to focus on either incremental or radical innovation. From the theoretical viewpoint, the resource-based view provides two strategies for resource-limited SMEs: acquiring new resources or recombining available resources. The authors were able to clearly demonstrate for the first time that the recombination of resources is especially important for SMEs that specifically wish to pursue incremental innovation.

Details

Management Research Review, vol. 40 no. 2
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 28 February 2019

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…

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
ISSN: 0265-2323

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Article
Publication date: 6 November 2018

Ildus Rafikov and Elmira Akhmetova

This paper aims to examine the concepts of scarcity and abundance from an interdisciplinary perspective. It argues that the idea of economics, as the study of human…

Abstract

Purpose

This paper aims to examine the concepts of scarcity and abundance from an interdisciplinary perspective. It argues that the idea of economics, as the study of human behavior with regard to scarce resources and unlimited wants, leads to competition, confrontation and conflict, whereas the nature of humans is that of kindness, cooperation and sharing.

Design/methodology/approach

The paper uses content analysis of texts from multiple disciplines, using both deductive and inductive logic, to study the situation of scarcity and abundance, explore reasons and offer remedies. The paper consists of seven sections, five of which are the main discussion. Section 2 looks at the concepts of scarcity and abundance. Section 3 presents reasons for scarcity: economic and behavioral. Section 4 discusses the civilization perspective of poverty and wealth. Section 5 briefly looks at sustainable development and good governance. Section 6 argues in favor of simplicity and spirituality as remedies for the problem of scarcity, and Section 7 concludes the paper.

Findings

The paper demonstrates the relativity of the concepts of scarcity and abundance, points out the paradox of the modern consumer economies and argues that simplicity, spirituality and universal values are necessary to remedy the ills of overconsumption/overproduction, waste and inequality.

Originality/value

This paper offers spirituality and ethics-based remedies for the negative consequences of neo-classical economics and social Darwinism.

Details

International Journal of Ethics and Systems, vol. 35 no. 1
Type: Research Article
ISSN: 0828-8666

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Article
Publication date: 31 January 2020

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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2572

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
ISSN: 0309-0566

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Article
Publication date: 11 May 2015

Amir Wahbalbari, Zakaria Bahari and Norzarina Mohd-Zaharim

The aim of this paper is to reconcile the diverging opinions among Islamic economists toward the concept of scarcity and to present a holistic model of scarcity and…

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2410

Abstract

Purpose

The aim of this paper is to reconcile the diverging opinions among Islamic economists toward the concept of scarcity and to present a holistic model of scarcity and abundance from a Qur’anic perspective.

Design/methodology/approach

Analyses of both interviews and texts were performed. The method in studying scarcity from Islamic perspective consisted of semi-structured interview with five experts in the field of Islamic economics and development.

Findings

One major implication of this study is that the concept of scarcity as it is postulated by mainstream economics tends to clash with the Islamic worldview, as it does not have any reference in Islam. Scarcity can act as a phenomenon in economic activities but not as the defining concept in Islamic economics.

Practical implications

Practically, this paper will contribute to the making of the first lecture of the course of Islamic economics.

Social implications

Socially, this paper will contribute to the process of transforming the science of economics and Islamic economics for a sustainable tomorrow.

Originality/value

This paper is a fundamental paper that addresses some aspects from critical realism and transcendental idealism into the making of Islamic economics. Not only that the discussion on the concept of scarcity in Islamic economics is limited and seems to be lacking; in addition, this paper offers a critical discussion on the validity of the concept of scarcity in economics from a critical perspective.

Details

Humanomics, vol. 31 no. 2
Type: Research Article
ISSN: 0828-8666

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