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21 – 30 of over 18000Tser 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 scarcity…
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.
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Tser-Yieth Chen, Tsai Lien Yeh and Yen Ling Lin
The purpose of this study is to explore the substitute scarcity appeals (unit scarcity or option scarcity) effect on experiential gift’s purchase intention, based on difference in…
Abstract
Purpose
The purpose of this study is to explore the substitute scarcity appeals (unit scarcity or option scarcity) effect on experiential gift’s purchase intention, based on difference in gift attribute (hedonic or utilitarian gift) and difference in the types of givers (close or distant giver), which is a new consideration.
Design/methodology/approach
This study was conducted with two experiments and examined four hypotheses in total. These hypotheses were examined using a 2 × 2 between-subjects designs, and a two-factorial covariance analysis was conducted.
Findings
Empirical results show that unit scarcity produces greater purchase intention than the option scarcity of close givers. For hedonic gifts, unit scarcity produced greater purchase intention than the option scarcity.
Originality/value
The originality of this study is to explore the substitute scarcity appeals effect on experiential gift’s purchase intention based on different types of givers and different types of gifts. The result serves as the gift marketing strategy of online platform operators and the future reference for marketers to create more value and purchase intention.
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Soo‐Jiuan Tan and Seow Hwang Chua
This paper investigates the impact of framing through the use of a vague scarcity restriction (“while stocks last”) on consumers' perception of promotional offers involving…
Abstract
This paper investigates the impact of framing through the use of a vague scarcity restriction (“while stocks last”) on consumers' perception of promotional offers involving different claim formats (tensile price claim such as “save up to 60 percent” versus non‐tensile price claim such as “save 60 percent”) and different amount of price discounts. The findings show that framing the sales offer with such a vague scarcity restriction and using a tensile claims format improve the consumers' perceived informational value of the offer, only if exaggerated price discounts are involved. This study also confirms earlier studies' findings on the effects of exaggerated price discounts and tensile claims on consumers' perceived savings and information value of sales promotional offers. Managerial implications are discussed.
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Rafay Ishfaq, Uzma Raja and Shashank Rao
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Practical implications
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.
Originality/value
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.
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Bilwa Deshpande, Debasis Pradhan, Bharadhwaj Sivakumaran and Teidorlang Lyngdoh
The purpose of this paper is to examine the varying impact of advertising appeals on customers’ impulse buying (IB) for vice and virtue products.
Abstract
Purpose
The purpose of this paper is to examine the varying impact of advertising appeals on customers’ impulse buying (IB) for vice and virtue products.
Design/methodology/approach
This research used two experiments varying humor/scarcity (high/low) and product category (vice versus virtue).
Findings
Humor (scarcity) enhances IB of vice (virtue) products through anticipation of enjoyment (perception of uniqueness).
Research limitations/implications
This research identifies a new antecedent of IB, advertising and additionally, a new moderator, product type (vice/virtue) in the ad appeal–IB relationship.
Practical implications
Practitioners managing vice (virtue) brands may use humor (scarcity) appeals to promote impulse buying.
Originality/value
This paper demonstrates that humor (scarcity) appeals enhance impulse buying of vice (virtue) products and shows the underlying mechanisms behind these effects.
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Egemen Sertyesilisik and Mehmet Akif Ceylan
Water resources play a significant role in economic growth and socio-economic development. Jordan experiences water scarcity. As the water resources can be used in manufacturing…
Abstract
Water resources play a significant role in economic growth and socio-economic development. Jordan experiences water scarcity. As the water resources can be used in manufacturing and agriculture, their sustainable use and solutions to water scarcity problem can contribute to the sustainable economic and socio-economic development in Jordan. Furthermore, there are political and economic aspects of Jordan’s water scarcity. Jordan is trying to solve its water scarcity problem through projects. Based on an in-depth literature review, this chapter aims to investigate Jordan’s water scarcity problem, highlighting its political and economic aspects and their impacts on socio-economic development, and to propose solutions to the water scarcity problem in Jordan. Water is vital for economic development and political stability in Jordan. It is important for Jordan to use its water resources in an efficient, effective and sustainable way so that socio-economic development of Jordan can be supported. Unsustainable use of water resources can cause depletion of Jordan’s scarce water resources, which can exacerbate magnitude of water resource problem and hinder socio-economic development. This chapter can be beneficial to economists, politicians and academics.
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Henna M. Leino, Janet Davey and Raechel Johns
Disruptive shocks significantly compromise service contexts, challenging multidimensional value (co)creation. Recent focus has been on consumers experiencing vulnerability in…
Abstract
Purpose
Disruptive shocks significantly compromise service contexts, challenging multidimensional value (co)creation. Recent focus has been on consumers experiencing vulnerability in service contexts. However, the susceptibility of service firms, employees and other actors to the impacts of disruptive shocks has received little attention. Since resource scarcity from disruptive shocks heightens tensions around balancing different needs in the service system, this paper aims to propose a framework of balanced centricity and service system resilience for service sustainability.
Design/methodology/approach
Adopting a conceptual model process, the paper integrates resilience and balanced centricity (method theories) with customer/consumer vulnerability (domain theory) resulting in a definition of multiactor vulnerability and related theoretical propositions.
Findings
Depleted, unavailable, or competed over resources among multiple actors constrain resource integration. Disruptive shocks nevertheless have upside potential. The interdependencies of actors in the service system call for deeper examination of multiple parties’ susceptibility to disruptive resource scarcity. The conceptual framework integrates multiactor vulnerability (when multiactor susceptibility to resource scarcity challenges value exchange) with processes of service system resilience, developing three research propositions. Emerging research questions and strategies for balanced centricity provide a research agenda.
Research limitations/implications
A multiactor, balanced centricity perspective extends understanding of value cocreation, service resilience and service sustainability. Strategies for anticipating, coping with and adapting to disruptions in service systems are suggested by using the balanced centricity perspective, offering the potential to maintain (or enhance) the six types of value.
Originality/value
This research defines multiactor vulnerability, extending work on experienced vulnerabilities; describes the multilevel and multiactor perspective on experienced vulnerability in service relationships; and conceptualizes how balanced centricity can decrease multiactor vulnerability and increase service system resilience when mega disruptions occur.
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The purpose of this paper was to identify social and behavioral factors responsible for panic buying during global pandemics such as COVID-19.
Abstract
Purpose
The purpose of this paper was to identify social and behavioral factors responsible for panic buying during global pandemics such as COVID-19.
Design/methodology/approach
According to regulatory focus theory, behavior of individuals is regulated by two motivational systems – prevention and promotion. Prevention-focused behavior is motivated by security and safety needs and is associated with a strategic preference for vigilant means of goal pursuit. Prevention-focused vigilance is reflected in unwillingness to take risks and low ability to cope with uncertain environments and changing conditions. Promotion-focused behavior is motivated by growth and self-development needs and is associated with a strategic preference for eager means of goal pursuit. Promotion-focused eagerness is reflected in willingness to take risks and high ability to cope with uncertainty and change. Two studies tested the notion that panic buying during public health crises such as COVID-19 is related to the strength of the prevention system, perceived scarcity of products, perceived threat of the disease, age and gender.
Findings
Study 1 showed that the higher the perceived scarcity of products, the higher was the probability that panic buying would set in. Yet, different patterns emerged for men and women. Among women, the stronger the prevention focus, the stronger was the effect. Among men, by contrast, the stronger the prevention focus, the weaker was the effect. Study 2 showed that the higher the perceived threat of the disease, the higher was the probability that panic buying would occur. However, different patterns were observed with age. Among older adults, the stronger the prevention focus, the stronger was the effect. Among young adults, by contrast, the stronger the prevention focus, the weaker was the effect.
Research limitations/implications
Implications to address erratic consumer behavior during future pandemics are discussed.
Originality/value
By applying the theory of regulatory focus to consumer marketing, this research helps to identify marketing strategies to manage panic buying and develop contingency plans that address erratic consumer behavior during future pandemics.
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Jaspreet Kaur, Rambabu Lavuri, Park Thaichon and Brett Martin
The purpose of this study is to examine the impact of scarcity and the Lifestyles of Health and Sustainability (LOHAS) consumption tendency on the purchase intention of organic…
Abstract
Purpose
The purpose of this study is to examine the impact of scarcity and the Lifestyles of Health and Sustainability (LOHAS) consumption tendency on the purchase intention of organic foods. The study used the protection motivation theory and the stimulus-organism-response theory to understand the impact of comparatively new variables like “perceived scarcity” and “perceived consumer effectiveness” (PCE) on the consumer's organic food purchase intentions.
Design/methodology/approach
The study is using structural equation modeling with 402 organic food consumers. The participants are regular consumers who bought organic food from specialized shops and supermarkets in the previous few months. The data has been collected at organic food specialized shops and supermarkets that sell organic foods.
Findings
The results showed that LOHAS consumption tendency (LCT), scarcity and PCE positively affect attitude. Similarly, LCT and PCE direct affect trust. Scarcity and PCE directly positive impact on purchase intention of organic food products. Interestingly, LCT had no direct impact on the purchase intention of the product. Trust and attitude were found to be significant mediators impacting purchase intention.
Originality/value
The study contributes to the past theoretical literature on LOHAS consumption by analyzing new constructs like scarcity and PCE in the context of organic food consumption. These findings will be crucial for marketers planning to launch organic products in new markets.
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Wagner Junior Ladeira, Fernando de Oliveira Santini and Marcelo Gattermann Perin
The current research empirically aims to explore how displaying incompleteness influences the processing of product information and the number of products placed in the basket…
Abstract
Purpose
The current research empirically aims to explore how displaying incompleteness influences the processing of product information and the number of products placed in the basket. This paper proposes a model of the effects of display incompleteness to analyze the influence of the processing of product information and product scarcity.
Design/methodology/approach
Four studies were conducted to test a model of the effects generated by the display incompleteness.
Findings
The results suggest that incomplete display increases the processing of product information and the number of products chosen. In addition, it supports that processing product information interacts with incomplete display to predict the number of display products placed in the basket. In this context, perceived scarcity cannot increase the effects of incomplete display on processing product information at low levels of perception. On the other hand, consumers will tend to process more information from incomplete displays when perceived scarcity gradually increases.
Research limitations/implications
The empirical findings have some limitations. First, the authors’ experiments do not define whether scarcity was caused due to excessive demand or restricted supply. Second, the studies do not analyze the perceived exclusivity of the product in short supply. Finally, the studies did not indicate the differences between display incompleteness that showed variety and category scarcity.
Practical implications
The findings demonstrate that one of the ways to get customers' attention would be to have an efficient strategy for displaying incompleteness. Many managers believe the lack of products on display is an inventory management problem. However, the studies show that this can help increase product sales.
Originality/value
This research contributes to developing better metrics to understand the processing of product information in display incompleteness. Overall, the studies have demonstrated the value of measuring visual attention as an expression of processing product information to understand better how people visually process display incompleteness and its effects on consumption responses.
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