How does scarcity promotion lead to impulse purchase in the online market? A field experiment

Wu, Yi; Xin, Liwei; Li, Dahui; Yu, Jie; Guo, Junpeng

doi:10.1016/j.im.2020.103283

Cited by 128 publications

(108 citation statements)

References 50 publications

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“…This could be due to a risk of losing one’s freedom and can prompt heightened awareness and interest towards the inaccessible product, increasing one’s incentive to acquire the close substitute that may be unavailable soon [ 63 , 64 , 65 ]. The reactance, a psychological motivational state triggered by the belief that their freedom when carrying out a certain behavior is restricted [ 66 , 67 ], may encourage panic buying behaviors (H 6 ) [ 52 , 53 ]. This is because consumers may respond swiftly and sometimes irrationally, to the perceived scarcity, to rebuild forgone freedom [ 68 ].…”

Section: Literature Reviewmentioning

confidence: 99%

The Determinants of Panic Buying during COVID-19

Chua

Yuen

Wang

et al. 2021

IJERPH

124

106

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The COVID-19 pandemic has seen an unmatched level of panic buying globally, a type of herd behavior whereby consumers buy an uncommonly huge amount of products because of a perception of scarcity. Drawing on the health belief model, perceived scarcity, and anticipated regret theories, this paper formulated a theoretical model that linked the determinants of panic buying and analyzed their interrelationships. Subsequently, data were collated from 508 consumers through an online survey questionnaire in Singapore that was conducted during the early stage of the pandemic, before the onset of the circuit breaker in April 2020. Next, an analysis of the results was done through structural equation modeling. It showed that the effect of the health belief model dimensions (i.e., perceived susceptibility, perceived severity, outcome expectation, cues to action, and self-efficacy) on panic buying is partially mediated by the consumers’ perceived scarcity of products. Furthermore, the effect of perceived scarcity on panic buying is partially mediated by consumers’ anticipation of regret. This paper expands on the current theoretical understanding of panic buying behavior, giving insights into the possible measures and solutions that policymakers and relevant stakeholders can uptake to manage panic buying in future a pandemic or health crisis.

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Section: Literature Reviewmentioning

confidence: 99%

The Determinants of Panic Buying during COVID-19

Chua

Yuen

Wang

et al. 2021

IJERPH

124

106

View full text Add to dashboard Cite

show abstract

“…It enhances the buying process by informing consumers that access to a particular product is limited (Lynn, 1989 ). According to Wu et al ( 2020 ), both limited-quantity scarcity and limited-time scarcity can positively lead to online impulsive buying. Thus, the following hypothesis is proposed: H6.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“… Liu et al ( 2013 ), Chen and Yao ( 2018 ) Marketing Stimuli scarcity The state that a product or a service is in short demand. Wu et al ( 2020 ), Akram, Hui, Khan, Yan, and Akram ( 2018b ) price The amount of money paid for the products. Park et al ( 2012 ), Xu and Huang ( 2014 ) novelty The degree to which consumers perceive that the item’s manifestation is two-way, controllable, and responsive to input.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Among marketing stimuli, some factors are similar to those in offline impulsive buying, such as discount price and promotion (Iyer et al, 2019 ). However, the online context has its unique advantages, because IT-facilitated online context can amplify the effect of scarcity on online impulsive buying (Wu et al, 2020 ). For example, online retailers can provide real-time inventory availability information, which underlines the scarcity effect.…”

Section: Introductionmentioning

confidence: 99%

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A Meta-Analysis of Online Impulsive Buying and the Moderating Effect of Economic Development Level

Zhao

Wang

et al. 2021

Inf Syst Front

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Online impulsive buying has become increasingly prevalent in e-commerce and social commerce research, yet there is a paucity of systematically examining this particular phenomenon in the paradigm of information systems. To advance this line of research, this study aims to gain insight into online impulsive buying through a meta-analysis of relevant research. Derived from 54 articles, this meta-analysis categorized the critical factors that influence online impulsive buying into the website, marketing, and affective stimuli. This study further explores the moderating effect of economic development level. The empirical results reveal that the chosen 13 main factors are significantly and positively related to online impulsive buying except for website security, price, novelty, and negative emotion. Moreover, economic development level moderates the relationship between several factors (i.e., website visual appeal, ease of use, price, promotion, pleasure, and positive emotion) and online impulsive buying. This study contributes to both theory and practice. It not only extends the impulsive buying literature to the online context by emphasizing the IT-supported website stimuli, but also provides implications for future research on online impulsive buying behavior across different economic development levels. Moreover, it provides guidelines for practitioners on how to leverage information technology to induce online impulsive buying.

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“…In specific to customer stockpiling (or panic buying) behavior that is frequently observed after the appearance of unexpected events such as natural disasters, the focus of related research is commonly confined to investigating changes in customers' purchasing behavior, driven by the supply failures of goods and services [28][29][30][31]. For example, considering both limited quantity scarcity and limited time scarcity, [32] identifies consumers' panic buying behaviors during COVID-19 through the models of Stimuli-Organism-Response and Competitive Arousal.…”

Section: Post-disruption Demand Identification Considering Stockpilingmentioning

confidence: 99%

Dynamic sourcing strategies for supply disruptions under consumer stockpiling

Zhou

2021

Complex Intell. Syst.

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This paper considers a make-to-order system where production gets disrupted due to a random supply failure. To avoid potential stock-out risk and responding price increase during disruption, customers might decide to stockpile extra units for future consumption. We investigate the contingent sourcing strategy for the manufacturer to cope with the disruption. To this end, we first discuss the optimal post-disruption stockpiling decision for customers. In view of expected disruption duration, price rise, and inventory holding cost, three types of stockpiling behavior are analytically provided for the customers: non-stockpiling, gradual stockpiling, and instantaneous stockpiling. Next, a model is formulated to optimize the joint decision of contingent sourcing time and quantity, with the objective of maximizing profit expectation. Finally, by conducting numerical analysis, we generate further insights into the role of relative factors and provide specific managerial suggestions on how to adapt dynamic contingent sourcing strategies to alleviate different disruptions, under different market environments and customer behaviors.

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How does scarcity promotion lead to impulse purchase in the online market? A field experiment

Cited by 128 publications

References 50 publications

The Determinants of Panic Buying during COVID-19

The Determinants of Panic Buying during COVID-19

A Meta-Analysis of Online Impulsive Buying and the Moderating Effect of Economic Development Level

Dynamic sourcing strategies for supply disruptions under consumer stockpiling

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