Scarcity tactics in marketing: A meta-analysis of product scarcity effects on consumer purchase intentions

Scarcity tactics are an essential tool for marketers. Cues that signal the current or potential unavailability of a product generally enhance its value and desirability and in turn increase purchase intentions. While there have been earlier reviews, the fragmented nature of the research to date means there is no cohesion across findings. Given that retailers employ a variety of scarcity cues in a diversity of settings, it is important to identify the magnitude of the effect of scarcity cues and how the effect on consumers’ purchase intentions changes across conditions. This research presents a meta-analysis of 416 effect sizes from 131 studies. Results show that demand-based scarcity is most effective for utilitarian products, supply-based scarcity for experiences, and time-based scarcity for high involvement products. The results show that managers need to consider the above factors to maximize the success of scarcity tactics in their marketing campaigns.     

The effects of document language quality on consumer perceptions and intentions

This article establishes a link between language quality in the documentation accompanying a product and consumers' evaluations of, and behavioural intentions towards, both the product and the manufacturer. In a laboratory experiment, 116 participants assembled a product using assembly guides with different language quality levels. Results show that language quality affects document evaluation, which spills over to the evaluations of both the product and the manufacturer. Findings also indicate that the documentation accompanying a product is a vital extrinsic cue used by consumers to evaluate both the product and the manufacturer, which implies that these documents are secondary products that add value to the primary product. Theoretical and managerial implications of these findings are discussed. Copyright © 2010 ASAC. Published by John Wiley & Sons, Ltd.     

The effects of endorsers' facial expressions on status perceptions and purchase intentions

The facial expressions that endorsers convey in a print ad can influence consumers' reactions to the product being advertised. This effect, which is mediated by perceptions of the endorsers' social status, depends on whether the endorser is male or female. Consumers expect endorsers' facial expressions to conform to normative expectations for how men and women present themselves to others and they attribute high social status to those whose expressions deviate from these expectations. Thus, they perceive smiling male endorsers to have high status but smiling female endorsers to have low status. These perceptions, which are independent of warmth and competence, influence consumers' willingness to purchase products whose social prestige value is unknown a priori. Five experiments confirm these conclusions and demonstrate their implications for actual purchase behavior.     

Race,homophily, and purchase intentions and the Black consumer

Black consumers are an important market for advertisers to reach. However, designing effective communication strategies is difficult. This study examines the moderation effect of ethnic identification (strength of identity with other blacks) on the tie between advertising stimuli (with racially congruent or incongruent actors) and the subject's perceived homophily (similarity) toward actors featured in ads, and if perceived homophily influences purchase intentions regarding advertised products. ANOVA found a significant interaction between ethnic identity and racial congruity on the perceived level of homophily. In addition, a simple effect for racial congruity on perceived homophily was found. Regression analysis subsequently found a significant effect for the level of perceived homophily on the level of purchase intent. Strategic considerations for marketing advertisers and future research ideas are also presented. © 2000 John Wiley & Sons, Inc.     

Online word of mouth and consumer purchase intentions

Previous researchers have explained how offline word of mouth (WOM) influences consumer behaviour. Increasingly, however, consumers are turning to online WOM, especially online forums. In an online context, the research discussed in this article replicates the approaches taken to studying offline WOM. Grounded in social comparison theory, social network analysis and the theory of reasoned action, a mall intercept survey of consumers in Hong Kong showed that both similarity between a user’s interests and a forum’s topic and user attitudes towards the forum strongly predict purchase intentions as well as having an indirect effect through helping determine the forum’s persuasiveness. Theoretical implications are discussed as well as practical implications for marketers and recommendations for further research.     

The effect of web interface features on consumer online purchase intentions

Corporations spend millions of dollars a year creating and maintaining corporate websites, yet many of these sites fail to reach the organization's goals [Freemantle D. The psychology of crm. Int J Cust Relatsh Manag 2002; http://www.superboss.co.uk/articles2main.htm]. Recent research suggests that these failures reflect poor website design, yet this research lacks the specificity necessary to provide practical recommendations for improving site performance [Rosen EE, Purinton E. Website design: viewing the web as a cognitive landscape. J Bus Res 2004; 57:787-94]. This study fills that gap by providing specific recommendations regarding website design elements that generate positive managerial outcomes. First, the study tests a wide range of design elements to determine those that provide human elements and computer elements. Next, these elements are linked through intermediaries using the uses and gratifications theory, technology acceptance model, and the concept of flow to explain purchase intentions and intentions to revisit the site.     

Private labels versus national brands: The effects of branding on sensory perceptions and purchase intentions

Consumers increasingly consider private labels to be as good as national brands. This research raises the question of whether national brands and private labels equally affect consumers’ sensory perceptions and purchase intentions. The results of two studies show that consumers reverse their evaluation of private labels (vs. national brands) when tasting the product in an informed (vs. blind) condition. When consumers are not aware of brand names, they indicate better taste and higher purchase intentions for private labels. However, the opposite is true when they try products in an informed condition. We discuss the implications for private labels and national brands.     

The role of perceived product quality and overall satisfaction on purchase intentions

The study investigated the effects of perceived product quality and overall satisfaction on purchase intentions. Moreover, the direct and indirect effects of values and involvement on purchase intentions were studied. The study utilized the survey questionnaire and used sport shoes as the product being researched. The sample consisted of 197 students who responded to an anonymous questionnaire. Five hypotheses were tested and four of them were confirmed by the data. Perceived quality had a direct and an indirect effect (through overall satisfaction) on purchase intentions, overall satisfaction had a direct effect on purchase intentions and involvement had an indirect effect on purchase intentions through overall satisfaction and perceived quality. The results of the study provide several theoretical and practical implications.     

Explaining the impact of consumer religiosity,perceived risk and moral potency on purchase intentions

The role of religion has been overlooked as an antecedent to risk perception, as has moral potency, when purchasing religiously sensitive products. The aim of this study is to demonstrate how perceived risk and moral potency explain the impact of shopper religiosity on purchasing religiously-questionable products from retailers. A conceptual model was tested on a sample of 271 respondents, elucidating the complex relationships between religiosity, social and psychological risk, moral potency and purchase intention. The model offers a strong psychological explanation of how a shopper's religion may increase their perceptions of risk and personal responsibility, confidence and courage, which subsequently impact purchase intentions. Retail managers may choose to implement this model to better predict shopper adoption behaviour of new religiously-questionable products. The model allows for future empirical examinations across multiple shopping contexts and may be employed to estimate levels of demand for new products based on the extent of religiosity, moral potency and risk.     

Complimentary competition: The impact of positive competitor reviews on review credibility and consumer purchase intentions

Online reviews are important decision aids for consumers, but not all reviews are perceived as equally credible, which may hinder consumer decisions. This research identifies positive competitor reviews as a novel source of credible reviews. A pre-test and four studies show that consumers perceive positive reviews written by competitors as more credible than similar consumer-generated reviews. This is because, compared to lay consumers, competitors are perceived as less likely to be compensated for their positive reviews. Positive competitor views, in turn, elicit greater intentions to purchase the reviewed product. Positive competitor reviews are expected to contribute to a “coopetitive” environment.     

An examination of the effects of partitioned country of origin on consumer product quality perceptions

This paper deals with the effects of partitioned country‐of‐origin associations on consumer product quality evaluations. The main objective of this research is to examine the cognitive processes by which country‐of‐origin information influences the consumer's evaluation of a product. To study the psychological process by which the country‐of‐origin associations are integrated in the formation of related behavioural deliberation, a hypothetical structural model was developed. The model contains seven theoretical constructs, i.e. country of design, perceived product sophistication, country of assembly, perceived manufacturing excellence, country of parts, perceived product quality and perceived product design. Data were analysed via structural equation models using Analysis of MOment Structures (AMOS) 5.0. Results show that countries that already have positioned themselves around a reputation for technological innovation related to product development and manufacturing may expect consumers to transfer those associations to new products from the country.     

The effect of benefits generated from interacting with branded mobile apps on consumer satisfaction and purchase intentions

This study extends the “Uses and Gratifications” approach (U&G) from a web context to a new one, i.e. mobile applications. It seeks to investigate the effect of the key benefits generated from interacting with branded mobile apps on consumer satisfaction and purchase intentions. A self-administrated questionnaire was used to collect the study data. The questionnaire was distributed to 358 participants inside seven major malls in a Middle Eastern country (Jordan). Purposive sample was employed. The data were analyzed using structural equation modeling (AMOS 18). Four key findings emerged from the current research. First, the study confirms the existence of four interaction-based benefits in the context of mobile apps, namely: learning benefits, social integrative benefits, personal integrative benefits and hedonic benefits. Second, apart from social integrative benefits, the other three benefits are found to influence consumer satisfaction to varying degrees. Third, with regard to purchase intentions, only learning benefits and hedonic benefits are found to generate that. Finally, the study confirms the relationship between consumer satisfaction and purchase intentions in a mobile context. The study contributes to the literature through adopting the U&G approach as a theoretical base to examine the key benefits that consumers gain when interacting with branded mobile apps.     

Exploring consumer purchase intentions and behavior of buying ayurveda products using SOBC framework

The research intended to study the consumer's buying behaviour of Ayurveda products by examining factors that influence consumer's buying decision. Stimuli-Organism-Behaviour-Consequence (SOBC) framework was deployed to test 1316 responses collected using a structured questionnaire. Analysis was performed using CB-SEM method while demographic variables were used as moderator. The four dimensions used in the study, including Stimuli (Health consciousness, Product attribute); Organism (Product availability. Ethnocentrism and Environmental and Sustainability Orientation); Behaviour (Customer beliefs and Purchase intention) and Consequence (Buying behaviour) were found to hold positive association as hypothesized. House-hold income and educational qualification moderated the relationship between organisms and behaviour as well as behaviour and consequence. SOBC model is unique in context of traditional/culture oriented products. The constructs incorporated in the SOBC model provides novelty to the study. Inclusion of Ethnocentrism and Product Availability as Organism have not been examined in the previous studies. The study adds to current literature on consumer behaviour specifically in the context of traditional products. Identifying Health Consciousness in the context of generic Ayurveda products with a unique set of variables contributes to the literature.The identification of stimuli causing behaviour such as health consciousness and product attribute and organisms that influence behavioural response including product availability ethnocentrism as well as environmental and sustainability orientation provide consumer insights to marketers and firms dealing in traditional products. The perspective on consumer beliefs provide directions of policy formulation to governments.     

Background music tempo effects on food evaluations and purchase intentions

This article is a report of results of three studies investigating effects of fast versus slow background musical tempo on physiology, cognition, and emotions. Two pilot studies first measure consumer perceptions of tempo. In Studies 1 and 2, participants view a short video restaurant advertisement featuring fast or slow background music along with illustrations of food items. Results indicate that fast music is more effective than slow music for evoking positive taste expectations and purchase intentions. Study 3 shows that the effects observed in Studies 1 and 2 occur because fast music enhances self-reported arousal levels that then lead to enhanced moods, taste expectations, and purchase intentions. Theoretical implications regarding effects of music on emotional responses are discussed, as are practical managerial implications for using fast music as a persuasive technique.     

Effect of value perceptions on luxury purchase intentions: an Indian market perspective

India is witnessing a phenomenal growth in the luxury market segment. However, empirical studies in this domain are few and far between. The main objectives of this study are, firstly, to build and empirically test the theoretical framework designed to measure the effect of value perceptions on intention to purchase luxury fashion brands among Indian consumers. Secondly, to determine the role of gender in understanding the relationship between luxury value dimensions and purchase intention. This study employed researcher controlled sampling and questionnaires were administered through the personal interview from actual users of luxury fashion brands. Structural equation modeling (SEM) was applied to test proposed hypotheses using AMOS. The statistical analysis indicated that conspicuous value was the most significant predictor of purchase intention among Indian luxury consumers followed by hedonic value and social value. The results of the study also revealed that gender does not play moderating role in the relationship between luxury value dimensions and purchase intention among Indian consumers.     

Lose like a man: body image and celebrity endorsement effects of weight loss product purchase intentions

Abstract

Recent research suggests men are increasingly concerned with their body size, which has led to a corresponding increase in marketing efforts for weight loss products geared toward them. In many cases, these ads include athlete endorsers of the product. Drawing from the match-up hypothesis and social comparison theory, this study employed structural equation modeling to explore relationships between men’s body image, endorser credibility, advertisement believability, and purchase intentions for weight loss products using two advertisements featuring former professional athlete endorsers. Results indicate an inverse relationship between consumer body image and athlete endorser credibility, such that individuals with lower body image perceived the endorsers as more credible. Further, athlete endorser credibility was positively associated with advertisement believability, which itself was associated with purchase intentions. These findings suggest that athlete endorsers are an effective tool in marketing weight loss products to men, particularly those with negative body image. Further implications and directions for future research are discussed.     

Multiple unit price promotions and their effects on quantity purchase intentions

Consumers often encounter multiple unit price promotions whereby a price reduction is presented as a reduced total price for multiple units of the same item (e.g., an item regularly priced at $1.25 each is promoted as “5 for $5”). In a series of experiments, we find that the positive effect of these promotions on quantity purchase intentions is contingent on the magnitude of the quantity specified in the offer and the rate of product consumption. However, offer effectiveness is not influenced by highlighting single unit prices, the unrestricted nature of these promotions, or aggregate savings. As predicted by the selective accessibility explanation, the effect of multiple unit price promotions on quantity purchase intentions is shown to be mediated by accessing anchor-consistent knowledge. An agenda for further research and the implications of our findings for retail practice are discussed.     

Effects of co‐creation claim on consumer brand perceptions and behavioural intentions

Increasingly often, companies ‘co‐create’ with consumers in open innovation practices to develop new products more effectively. Little is known about how co‐creation affects consumer brand perceptions in the mass market. We hypothesize that co‐creative brands – as opposed to non–co‐creative brands – are perceived as more authentic and sincere, and are associated with relatively positive behavioural intentions. A between‐subjects experiment was conducted to test these hypotheses in an online panel of consumers who did not take part in co‐creation. The experiment had a 3 (control vs. co‐creation vs. co‐creation supported with some visual proof) × 2 (well‐known existing brand vs. fictitious brand) design. Quantitative data analyses (n = 530) confirmed that for both brands, co‐creation affects brand personality perceptions directly and behavioural intentions indirectly. This study shows that co‐creating with consumers can be a strategic method to positively influence product perceptions and behavioural intentions.     

Culture, product type, and price influences on consumer purchase intention to buy personalized products online

With personalization, consumers can choose from various product attributes and a customized product is assembled based on their preferences. Marketers often offer personalization on websites. This paper investigates consumer purchase intentions toward personalized products in an online selling situation.The research builds and tests three hypotheses: (1) intention to purchase personalized products will be affected by individualism, uncertainty avoidance, power distance, and masculinity dimensions of a national culture; (2) consumers will be more likely to buy personalized search products than experience products; and (3) intention to buy a personalized product will not be influenced by price premiums up to some level. Results indicate that individualism is the only culture dimension to have a significant effect on purchase intention. Product type and individualism by price interaction also have a significant effect, whereas price does not. Major findings and implications are discussed.