ScholarWorks@UNO

The Effect of Scarcity on Consumer Purchase Intentions

Can placing time constraints on promotions result in increased consumer response? According to Brannon and Brock (2001), when consumers are aware of product scarcity, they are more likely to exhibit greater purchase intentions. Our goal is to test if scarcity positively influences consumer preference when consumers are informed that the product is available for a limited time only. We ran an experiment that involved 100 actual Starbucks consumers. We handed out two different sets of questionnaires at five different Starbucks stores in St. Tammany Parish and Orleans Parish. In the experimental condition, consumers learned that Pumpkin Spice Latte would be available for a limited time only. In the control condition, consumers were not informed about the promotion. Inconsistent with our original prediction, findings from the one-way ANOVA showed that ad type (Limited Time Only ad vs. Regular ad) did not influence their preference for the Pumpkin Spice Latte. However, findings from the two -way ANOVA showed that the effect of ad type on preference would depend on the frequency of consumption (Light vs. Heavy users). Consistent with Brannon and Brock (2001), light coffee drinkers (vs. heavy coffee drinkers) liked the Pumpkin Spice Latte more in the presence of the limited time only ad, rather than the regular ad. In contrast, heavy coffee drinkers (vs. light coffee drinkers) liked the Pumpkin Spice Latte more in the presence of the regular ad, rather than the limited time only ad.