IDEAS home Printed from https://ideas.repec.org/a/sae/vikjou/v41y2016i3p209-221.html
   My bibliography  Save this article

An Examination of Response of Consumers with Different Levels of Uniqueness to Limited Quantity Offers

Author

Listed:
  • Mayank Jyotsna Soni
  • Abraham Koshy

Abstract

Executive Summary Marketers try to influence consumers through promotional offers by restricting availability of products to a limited number of customers, a limited time period, or a specific segment, thereby creating a perception of scarcity. Such promotional appeal of making a product or offer scarce is called as scarcity appeal. Literature suggests that people with high need for uniqueness (NFU) prefer scarce products, or at least products which are depleting fast. However, the relationship between scarcity of offers and the NFU has not been much explored. The objective of this research is to understand how consumers with different levels of uniqueness respond to the scarcity appeal offer, especially with discount. Hypotheses relate to variability of purchase intent and attitude towards the product due to scarcity versus no-scarcity sales promotion appeals and by consumers with high and low needs for uniqueness. Proposed hypotheses were tested using 2 × 2 between-subjects factorial design. Quantity scarcity and no-scarcity appeals were manipulated using pre-tested and validated scenarios. Product used in the scenarios (laptop) was identified through an iterative process of seeking inputs from respondents with demographic profile similar to those in the final sample. Consumers’ need for uniqueness (CNFU) purchase intention, and attitude towards product were measured using scales that were pre-tested and validated using accepted protocols. On testing the formulated hypotheses using experimental design, it was found that: Consumers respond more favourably to quantity scarcity appeal offer when compared with no-scarcity appeal offer. Consumers with higher NFU indicate higher purchase intention in a no-scarcity appeal situation when compared with those with low NFU. There is no statistically significant difference in purchase intention of consumers with high and low needs for uniqueness in a situation of scarcity appeal messaging.

Suggested Citation

  • Mayank Jyotsna Soni & Abraham Koshy, 2016. "An Examination of Response of Consumers with Different Levels of Uniqueness to Limited Quantity Offers," Vikalpa: The Journal for Decision Makers, , vol. 41(3), pages 209-221, September.
    • Handle: RePEc:sae:vikjou:v:41:y:2016:i:3:p:209-221
    DOI: 10.1177/0256090916663390
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0256090916663390
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0256090916663390?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gilles Laurent & Pierre Chandon & Brian Wansink, 2000. "A Benefit Congruency Framework of Sales Promotion Effectiveness," Post-Print hal-00458440, HAL.
    2. Mitchell, Andrew A, 1986. "The Effect of Verbal and Visual Components of Advertisements on Brand Attitudes and Attitude toward the Advertisement," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(1), pages 12-24, June.
    3. Tian, Kelly Tepper & Bearden, William O & Hunter, Gary L, 2001. "Consumer's Need for Uniqueness: Scale Development and Validation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(1), pages 50-66, June.
    4. Inman, J Jeffrey & Peter, Anil C & Raghubir, Priya, 1997. "Framing the Deal: The Role of Restrictions in Accentuating Deal Value," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(1), pages 68-79, June.
    5. Lynn, Michael, 1989. "Scarcity effects on desirability: Mediated by assumed expensiveness?," Journal of Economic Psychology, Elsevier, vol. 10(2), pages 257-274, June.
    6. repec:bla:kyklos:v:48:y:1995:i:3:p:369-87 is not listed on IDEAS
    7. Verhallen, Theo M. M., 1982. "Scarcity and consumer choice behavior," Journal of Economic Psychology, Elsevier, vol. 2(4), pages 299-322, December.
    8. LAURENT, Gilles & CHANDON, Pierre & WANSINK, Brian, 2000. "A benefit congruency framework of sales promotion effectiveness," HEC Research Papers Series 698, HEC Paris.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gierl, Heribert & Huettl, Verena, 2010. "Are scarce products always more attractive? The interaction of different types of scarcity signals with products' suitability for conspicuous consumption," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 225-235.
    2. Catherine Janssen & Joëlle Vanhamme & Adam Lindgreen & Cécile Lefebvre, 2014. "The Catch-22 of Responsible Luxury: Effects of Luxury Product Characteristics on Consumers’ Perception of Fit with Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 119(1), pages 45-57, January.
    3. Eisenbeiss, Maik & Wilken, Robert & Skiera, Bernd & Cornelissen, Markus, 2015. "What makes deal-of-the-day promotions really effective? The interplay of discount and time constraint with product type," International Journal of Research in Marketing, Elsevier, vol. 32(4), pages 387-397.
    4. Richard C. Hanna & Scott D. Swain & Paul D. Berger, 2016. "Optimizing time-limited price promotions," Journal of Marketing Analytics, Palgrave Macmillan, vol. 4(2), pages 77-92, July.
    5. Pierre Volle & Aïda Mimouni, 2003. "Bénéfices perçus de la fidélisation et qualité relationnelle : une application exploratoire au secteur du transport aérien," Post-Print halshs-00164836, HAL.
    6. Raghubir, Priya, 2006. "An information processing review of the subjective value of money and prices," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1053-1062, October.
    7. Mead, James A. & Richerson, Rob & Li, Wenjing, 2020. "Dynamic Right-Slanted Fonts Increase the Effectiveness of Promotional Retail Advertising," Journal of Retailing, Elsevier, vol. 96(2), pages 282-296.
    8. Palazon, Mariola & Delgado-Ballester, Elena, 2011. "The expected benefit as determinant of deal-prone consumers' response to sales promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 18(6), pages 542-547.
    9. Koch, Oliver Francis & Benlian, Alexander, 2015. "Promotional Tactics for Online Viral Marketing Campaigns: How Scarcity and Personalization Affect Seed Stage Referrals," Journal of Interactive Marketing, Elsevier, vol. 32(C), pages 37-52.
    10. Pourazad, Naser & Stocchi, Lara & Pare, Vipul, 2019. "Brand attribute associations, emotional consumer-brand relationship and evaluation of brand extensions," Australasian marketing journal, Elsevier, vol. 27(4), pages 249-260.
    11. Umair Akram & Peng Hui & Muhammad Kaleem Khan & Chen Yan & Zubair Akram, 2018. "Factors Affecting Online Impulse Buying: Evidence from Chinese Social Commerce Environment," Sustainability, MDPI, vol. 10(2), pages 1-28, January.
    12. Nichols, Bridget Satinover, 2012. "The development, validation, and implications of a measure of consumer competitive arousal (CCAr)," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 192-205.
    13. Bauer, Johannes C. & Kotouc, Alexander J. & Rudolph, Thomas, 2012. "What constitutes a “good assortment†? A scale for measuring consumers' perceptions of an assortment offered in a grocery category," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 11-26.
    14. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    15. Aîda Mimouni & Ouidade Sabri-Zaaraoui & Béatrice Parguel, 2010. "Competitive Advertising Within Store Flyers: A Win-Win Strategy?," Post-Print halshs-00634439, HAL.
    16. Guillaume Le Borgne & Lucie Sirieix & Sandrine Costa, 2014. "Food waste and promotions," Working Papers hal-01140919, HAL.
      • Le Borgne, G. & Sirieix, L. & Costa, S., 2014. "Food waste and promotions," Working Papers MoISA 201405, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    17. Wagner, Tillmann & Rudolph, Thomas, 2010. "Towards a hierarchical theory of shopping motivation," Journal of Retailing and Consumer Services, Elsevier, vol. 17(5), pages 415-429.
    18. Li, Wenjing & Hardesty, David M. & Craig, Adam W. & Song, Lei, 2022. "Hidden price promotions: Could retailer price promotions backfire?," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    19. Teck-Chai Lau & Tat-Huei Cham & David Ching-Yat Ng, 2018. "How Susceptible are Consumers in Impulse Purchasing Ready-to-Drink Products? Evidence from Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(6), pages 429-444, June.
    20. Kim, Joon Ho & Kang, Kyung Ho, 2018. "The effect of promotion on gaming revenue: A study of the US casino industry," Tourism Management, Elsevier, vol. 65(C), pages 317-326.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:vikjou:v:41:y:2016:i:3:p:209-221. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.