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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: 11 November 2019

Effectiveness of monetary discounts: comparing quantity scarcity and time restriction

Subhash Jha, Sujay Dutta and Ahmet Koksal

This study aims to examine whether adding a quantity scarcity message to a monetary discount helps to improve consumers’ offer-related perceptions and intentions, and how…

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Abstract

Purpose

This study aims to examine whether adding a quantity scarcity message to a monetary discount helps to improve consumers’ offer-related perceptions and intentions, and how the effectiveness of that message compares with adding time restriction to the offer.

Design/methodology/approach

Two experiments, where participants evaluated retail ads and responded to relevant measures, were conducted in two country markets.

Findings

Adding either a quantity scarcity message or time restriction to a monetary discount increases the potency of a retail offer. Further, when an offer ad emphasizes product and price-related cues in a balanced manner, time restriction results in more favorable consumer perceptions than scarcity. However, this difference in the messages’ efficacy disappears when the offer strongly emphasizes price-related cues.

Research limitations/implications

The US market sample is more homogeneous than the Indian one. Discounts were presented in terms of advertised reference prices; further research with other discount formats is desirable.

Practical implications

Understanding the relative efficacy of quantity scarcity message and time restriction in discounted retail offers can give managers flexibility in the use of these tools.

Originality/value

This paper addresses scholars’ call for theory-grounded research that provides guidance to retailers on the use of sales promotional tools.

Details

Journal of Consumer Marketing, vol. 36 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/JCM-07-2018-2763
ISSN: 0736-3761

Keywords

  • Signalling theory
  • Discount
  • Advertised reference price
  • Quantity scarcity
  • Time restriction

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Article
Publication date: 26 July 2013

Decision-contextual and individual influences on scarcity effects

Hsuan-Hsuan Ku, Chien-Chih Kuo, Yi-Ting Yang and Tzu-Shao Chung

This study aims to examine the relative effectiveness of demand-related and supply-related explanations of the scarcity of a product, and specifically the extent to which…

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Abstract

Purpose

This study aims to examine the relative effectiveness of demand-related and supply-related explanations of the scarcity of a product, and specifically the extent to which decision context and individual factors moderate purchase intention in response to those explanations.

Design/methodology/approach

The first of two formal experiments examines the effects of the two kinds of scarcity on participants ' purchase intentions with respect to utilitarian and hedonic product types. The second tests for self-monitoring differences in participants ' relative susceptibility to scenarios characterizing scarcity as either demand-generated or supply-generated, when their decisions are either private or subject to third-party scrutiny.

Findings

Experiment 1 shows that participants shopping for a utilitarian product are more inclined to respond positively to what they understand to be demand-generated scarcity, and less inclined to do so if the scarcity was attributed to limited supply; whereas the converse holds true for a hedonic product. Experiment 2 shows that for high self-monitors, increased purchase intention was the outcome of matching the alleged reason for scarcity to the demands of the decision context; low self-monitors were ready to consider demand-scarce products regardless of whether they knew that their consumption decisions would be subject to third-party scrutiny or private.

Originality/value

The paper identifies contextual and individual factors that explain and predict the extent to which one type of scarcity appeal may be more effective than another in influencing consumers ' purchasing decisions.

Details

European Journal of Marketing, vol. 47 no. 8
Type: Research Article
DOI: https://doi.org/10.1108/03090561311324345
ISSN: 0309-0566

Keywords

  • Scarcity effects
  • Utilitarian and hedonic products
  • Public versus private consumption
  • Self-monitoring
  • Demand management
  • Product planning
  • Buying behaviour

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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: 13 February 2017

Consumers’ impulsive buying behavior of restaurant products in social commerce

Namho Chung, Hyo Geun Song and Hyunae Lee

First, this paper aims to investigate the impact of impulsiveness on two types of shopping value (e.g. utilitarian and hedonic value) and the urge to buy restaurant…

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Abstract

Purpose

First, this paper aims to investigate the impact of impulsiveness on two types of shopping value (e.g. utilitarian and hedonic value) and the urge to buy restaurant products and services impulsively in social commerce environments. Second, the study assesses the impact of situational factors (e.g. scarcity and serendipity) on individuals’ shopping values.

Design/methodology/approach

Data were collected from 332 participants. By using PLS-graph 3.0, structural equation modeling was conducted. Furthermore, a hierarchical regression model was conducted for testing the mediating and moderating effects.

Findings

The results indicate that impulsiveness is a strong predictor for two types of shopping value (hedonic and utilitarian) and the urge to buy impulsively. While the hedonic shopping value was found to have a significant influence on the urge to buy impulsively, utilitarian value was not. Scarcity was moderator in the relationships between impulsiveness and both types of shopping value, whereas serendipity was found to moderate only the relationship between impulsiveness and the utilitarian shopping value.

Practical implications

The findings show that the marketing managers and application developers of social commerce should place their focus on scarcity and serendipity to stimulate consumers in having a hedonic shopping value so to have an urge to buy impulsively.

Originality/value

First, although most previous studies focused on only rational or planned consumption, this study focused on irrational and unplanned consumption as well. Second, the authors assessed the role of situational factors (scarcity and serendipity) occurring in social commerce and asserted that these factors moderate the relationship between consumers’ shopping values and their urge to buy impulsively.

Details

International Journal of Contemporary Hospitality Management, vol. 29 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/IJCHM-10-2015-0608
ISSN: 0959-6119

Keywords

  • Social media
  • Serendipity
  • Scarcity
  • Social commerce
  • Impulsive buying behaviour
  • Restaurant products

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Article
Publication date: 3 October 2019

The role of tie strength in bank credit card referral reward programs with scarcity messages

Chanho Song, Tuo Wang, Haakon T. Brown and Michael Y. Hu

The purpose of this paper is to investigate how referral reward programs (RRPs) utilizing scarcity messages influence bank credit holders’ referrals to and adoptions by…

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Abstract

Purpose

The purpose of this paper is to investigate how referral reward programs (RRPs) utilizing scarcity messages influence bank credit holders’ referrals to and adoptions by close or distant friends.

Design/methodology/approach

A 2×2 experiment is implemented with 760 consumers solicited through Amazon’s Mechanical Turk worker panel. Logit transformation and general linear models are used to test the proposed hypotheses.

Findings

Results showed that offering RRPs with limited available referrals (quantity scarcity) increases the overall number of referrals to and adoptions by close and distant friends. The percent of strong ties also increases with RRPs. As quantity scarcity is relaxed, the percentages of referrals to and adoptions by close friends decrease.

Originality/value

The inclusion of tie strength with scarcity framing greatly enhances our understanding of the effectiveness of RRPs for bank credit cards. To the authors’ knowledge, this is the first research attempt on this topic.

Details

International Journal of Bank Marketing, vol. 38 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/IJBM-02-2019-0070
ISSN: 0265-2323

Keywords

  • Relationship marketing
  • Credit card
  • Promotion
  • Scarcity messages
  • Referral rewards

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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: 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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