IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v11y2020i1d10.1007_s13132-018-0536-y.html
   My bibliography  Save this article

Converting Shelf-Based Scarcity into Innovation by Adopting Customer-Focused Innovation Approach

Author

Listed:
  • Antonio Usai

    (University of Sassari)

  • Daniele Porcheddu

    (University of Sassari)

  • Veronica Scuotto

    (University of Sassari
    University of the West of Scotland)

  • Jean-Paul Susini

    (Paris School of Business)

Abstract

Innovation, nowadays, is increasingly motivated by bottom-line considerations. Customers’ desires, needs, and preferences drive company innovativeness, even in a slow growth industry such as the food sector. In the analysis of the introduction of new (or improved) private label products in this sector, desirability and scarcity have been identified as the main elements of leverage in customer behaviour. However, product is considered desirable and scarce only if other individuals are buying it. Customer behaviour is not just affected by a direct observation of other customers, it is also influenced by traces that other customers “leave behind” such as empty shelf space (van Herpen et al. in Journal of Consumer Psychology, 19(3), 302–312, 2009, 303). This phenomenon, known as shelf-based scarcity, has attracted previous research that, in the main, refers to customer behaviour but not to the performance and innovativeness of firms. In fact, shelf-based scarcity can stimulate four categories of innovation: new uses (positioning), new ingredient (formulation), new packaging (packaging), and new production processes (technology). Therefore, through the lens of a customer-focused innovation approach (CFI), this research seeks to bridge this gap and offers a qualitative analysis of one of the largest food retail chains in Italy. The scope is to present the positive aspects of shelf-based scarcity in the innovation process and encourage food retailers to leverage outcomes which stem from this phenomenon in order to enhance their innovativeness.

Suggested Citation

  • Antonio Usai & Daniele Porcheddu & Veronica Scuotto & Jean-Paul Susini, 2020. "Converting Shelf-Based Scarcity into Innovation by Adopting Customer-Focused Innovation Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 70-83, March.
    • Handle: RePEc:spr:jknowl:v:11:y:2020:i:1:d:10.1007_s13132-018-0536-y
    DOI: 10.1007/s13132-018-0536-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-018-0536-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-018-0536-y?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniele Porcheddu, 2013. "Come percepiamo i display incompleti nei punti vendita?," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2013(4), pages 59-81.
    2. Ramon Caminal & Xavier Vives, 1996. "Why Market Shares Matter: An Information-Based Theory," RAND Journal of Economics, The RAND Corporation, vol. 27(2), pages 221-239, Summer.
    3. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
    4. Veronica Scuotto & Gabriele Santoro & Armando Papa & Elias G. Carayannis, 2017. "Triggering open service innovation through social media networks," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2017(3), pages 21-40.
    5. James Love & Stephen Roper, 1999. "The Determinants of Innovation: R & D, Technology Transfer and Networking Effects," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(1), pages 43-64, August.
    6. Parker, Jeffrey R. & Lehmann, Donald R., 2011. "When Shelf-Based Scarcity Impacts Consumer Preferences," Journal of Retailing, Elsevier, vol. 87(2), pages 142-155.
    7. Mantrala, Murali K. & Levy, Michael & Kahn, Barbara E. & Fox, Edward J. & Gaidarev, Peter & Dankworth, Bill & Shah, Denish, 2009. "Why is Assortment Planning so Difficult for Retailers? A Framework and Research Agenda," Journal of Retailing, Elsevier, vol. 85(1), pages 71-83.
    8. Fariborz Damanpour & Richard M. Walker & Claudia N. Avellaneda, 2009. "Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 650-675, June.
    9. Holmes, Thomas J, 2001. "Bar Codes Lead to Frequent Deliveries and Superstores," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 708-725, Winter.
    10. H. Leibenstein, 1950. "Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(2), pages 183-207.
    11. Drivas, Kyriakos & Giannakas, Konstantinos, 2006. "The Effect Of Cooperatives On Product Innovation In The Agri-Food System," 2006 Annual meeting, July 23-26, Long Beach, CA 21223, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Wilfred Amaldoss & Sanjay Jain, 2005. "Conspicuous Consumption and Sophisticated Thinking," Management Science, INFORMS, vol. 51(10), pages 1449-1466, October.
    13. Hsuan-Hsuan Ku & Chien-Chih Kuo & Wei-Luen Fang & Ya-Wen Yu, 2014. "The impact of retail out-of-stock options on preferences: The role of consumers’ desire for assimilation versus differentiation," Marketing Letters, Springer, vol. 25(1), pages 53-66, March.
    14. Xavier Gellynck & Bert Vermeire, 2009. "The Contribution of Regional Networks to Innovation and Challenges for Regional Policy," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(3), pages 719-737, September.
    15. Massara, Francesco & Porcheddu, Daniele & Melara, Robert D., 2014. "Asymmetric Perception of Sparse Shelves in Retail Displays," Journal of Retailing, Elsevier, vol. 90(3), pages 321-331.
    16. Patricia Rossi, 2017. "Marketing at the Confluence between Entertainment and Analytics," Post-Print hal-01810596, HAL.
    17. Corneo, Giacomo & Jeanne, Olivier, 1997. "Snobs, bandwagons, and the origin of social customs in consumer behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 32(3), pages 333-347, March.
    18. Spiros Bougheas, 2004. "Internal vs External Financing of R&D," Small Business Economics, Springer, vol. 22(1), pages 11-17, February.
    19. Robinson, Stacey G. & Brady, Michael K. & Lemon, Katherine N. & Giebelhausen, Michael, 2016. "Less of this one? I'll take it: New insights on the influence of shelf-based scarcity," International Journal of Research in Marketing, Elsevier, vol. 33(4), pages 961-965.
    20. Gruner, Kjell E. & Homburg, Christian, 2000. "Does Customer Interaction Enhance New Product Success?," Journal of Business Research, Elsevier, vol. 49(1), pages 1-14, July.
    21. Gallo, Anthony E., 1995. "Are There Too Many New Product Introductions In U.S. Food Marketing?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 26(1), pages 1-5, February.
    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. Parker, Jeffrey R. & Lehmann, Donald R., 2011. "When Shelf-Based Scarcity Impacts Consumer Preferences," Journal of Retailing, Elsevier, vol. 87(2), pages 142-155.
    2. Dmitri Kuksov & Kangkang Wang, 2013. "A Model of the "It" Products in Fashion," Marketing Science, INFORMS, vol. 32(1), pages 51-69, July.
    3. Boto-García, David & Baños-Pino, José Francisco, 2022. "Social influence and bandwagon effects in tourism travel," Annals of Tourism Research, Elsevier, vol. 93(C).
    4. Bindra, Sunali & Sharma, Deepika & Parameswar, Nakul & Dhir, Sanjay & Paul, Justin, 2022. "Bandwagon effect revisited: A systematic review to develop future research agenda," Journal of Business Research, Elsevier, vol. 143(C), pages 305-317.
    5. Gsottbauer, Elisabeth & van den Bergh, Jeroen C.J.M., 2014. "Environmental policy when pollutive consumption is sensitive to advertising: Norms versus status," Ecological Economics, Elsevier, vol. 107(C), pages 39-50.
    6. Li, Hui & Xu, Yunjie & Huang, Lihua, 2021. "When less is more? The contingent effect of product supply limitation in the release of new electronic products," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    7. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-877, October.
    8. Ramalingam, Abhijit, 2009. ""Endogenous" Relative Concerns: The Impact of Workers' Characteristics on Status and Pro ts in the Firm," MPRA Paper 18759, University Library of Munich, Germany.
    9. Ostovan, Nima & Khalili Nasr, Arash, 2022. "The manifestation of luxury value dimensions in brand engagement in self-concept," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    10. Corneo, Giacomo & Jeanne, Olivier, 1999. "Segmented communication and fashionable behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 371-385, July.
    11. Zhang, Qiao & Chen, Jing & Zaccour, Georges, 2020. "Market targeting and information sharing with social influences in a luxury supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    12. Anna K. Edenbrandt & Christian Gamborg & Bo Jellesmark Thorsen, 2020. "Observational learning in food choices: The effect of product familiarity and closeness of peers," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 482-498, June.
    13. Monteiro, Paulo Klinger & Moraga-González, José Luis, 2003. "We Sold a Million Units -- The Role of Advertising Past-Sales," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 57(2), April.
    14. Yuetao Gao, 2018. "On the Use of Overt Anti-Counterfeiting Technologies," Marketing Science, INFORMS, vol. 37(3), pages 403-424, May.
    15. Sweta Saxena & Kar-yiu Wong, 1999. "Currency Crises and Capital Control: A Survey," Working Papers 0045, University of Washington, Department of Economics.
    16. 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.
    17. P. K. Monteiro & J. L. Moraga, 1998. "``We sold a million copies''-The role of advertising past sales," Industrial Organization 9812001, University Library of Munich, Germany.
    18. Kaushik Basu, 2016. "Beyond the Invisible Hand: Groundwork for a New Economics," Economics Books, Princeton University Press, edition 1, number 9299.
    19. Murat Somer, 2001. "Cascades of Ethnic Polarization: Lessons from Yugoslavia," The ANNALS of the American Academy of Political and Social Science, , vol. 573(1), pages 127-151, January.
    20. Dunia López-Pintado & Duncan J. Watts, 2008. "Social Influence, Binary Decisions and Collective Dynamics," Rationality and Society, , vol. 20(4), pages 399-443, November.

    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:spr:jknowl:v:11:y:2020:i:1:d:10.1007_s13132-018-0536-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.