The use of product scarcity in marketing

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.

The Impact of Scarcity of Medical Protective Products on Chinese Consumers’ Impulsive Purchasing during the COVID-19 Epidemic in China

“…Scarcity induces consumers to make a choice between buying now or missing out on the purchase opportunity [65]. Scarcity positively influences FOMO [55,66].…”

The impact of product characteristics of limited-edition shoes on perceived value, brand trust and purchase intention

“…Chae et al, 2020;Koford & Tschoegl, 1998;Verhallen & Robben, 1994). Furthermore, product scarcity can occur as a result of circumstances beyond the control of a firm, or it can even be planned in advance, although this distinction is not explicitly reviewed in the literature (Shi et al, 2020). Businesses can benefit from either supply-induced or demand-induced types of scarcity (Roy & Sharma, 2015).…”

“…Despite public criticism and suspicion, they refute that such scarcity is a deliberate strategy; instead, they attribute it to factors such as high market demand in relation to the available production capacity (Husmith, 2013) and manufacturing difficulties associated with complex product design (Fekete, 2012). Furthermore, the factors that contribute to product scarcity can vary over time (Shi et al, 2020). For example, when demand exceeds supply, Grab's Surge Pricing is activated, which can occur as a result of fewer drivers being on the roads (i.e.…”

“…When demand is high, perceived product value increases over supply-induced scarcity (Worchel et al, 1975). Consumers' needs for conformity and demandinduced scarcity are inextricably linked which corresponds with conformity theory (Bernheim, 1994), and also between supply-induced scarcity and consumer need for uniqueness, which corresponds to the commodity theory (Brock, 1968;Shi et al, 2020). Researches by Gierl and Huettl (2010) and Roy and Sharma (2015) contend that supply-induced scarcity is more vulnerable to consumers who have a higher need for uniqueness.…”

Results of Beer Game Trials Played by Natural Resource Managers Versus Students: Does Age Influence Ordering Decisions?

“…These irrational responses were shown to be triggered by environmental stressors, which overwhelmed individuals' rational decision-making abilities or when individuals inappropriately applied decision heuristics incompatible with effective performance in the game. Emotional, psychiatric, and neuroanatomical factors are also discussed in Sterman and Dogan [69,82,83].…”