On the strategic use of product scarcity in marketing

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Hamilton, R W and Hosany, A R S. 2023. On the strategic use of product scarcity in marketing. Journal of the Academy of Marketing Science, 51(6), pp. 1203-1213. ISSN 0092-0703 [Article]

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Official URL: https://link.springer.com/article/10.1007/s11747-0...

Abstract or Description

When does product scarcity create lasting value for consumers and firms? We propose a framework overlaying the dimensions of demand-driven versus supply-driven scarcity and strategic versus non-strategic drivers of product scarcity. This framework generates three insights for the strategic use of product scarcity in marketing. First, because value from product scarcity is co-created by firms and consumers, it varies significantly across consumer segments, even for the same brand and product category. Second, the value generated by product scarcity tests to be longer lasting when product scarcity is both demand-driven and supply-driven. Third, the allocation mechanisms used to match demand and supply in response to product scarcity play a critical role in shaping consumer responses.

Item Type:

Article

Identification Number (DOI):

https://doi.org/10.1007/s11747-023-00976-w

Additional Information:

This version of the article has been accepted for publication, after peer review (when applicable) and is subject to Springer Nature’s AM terms of use, but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: http://dx.doi.org/10.1007/s11747-023-00976-w

Keywords:

Product scarcity, Demand-driven scarcity, Supply-driven scarcity, Value creation, Allocation mechanism

Departments, Centres and Research Units:

Institute of Management Studies

Dates: