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

Abstract

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. � 2016, � 2016 Indian Institute of Management, Ahmedabad.