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The Effect of Financial Deprivation and Scarcity Message on Purchase Intention

Abstract

The purpose of study 1 is to examine the interaction effect of financial deprivation and type of quantity-scarce message. Specifically, demand-scarce is more effective than the supply-scarce in the control condition. But, supply-scarce is more effective than the demand-scarce when financial deprivation is high because supply limited would recover the consumers whose self-esteem might have been damaged. This hypothesis is supported. Since then, All the tests have been limited to the condition that consumers are under the severe financial deprivation, with focus on consumer confidence in a recession. First of all, Study 2 is set up to verify reverse effect of price discount. Even though Price discount promotes purchase intention, but it sometimes triggers sales attempts. based on this, we assume that price discount has a positive effect in demand-scarce, on the contrary, in supply-scarce, price discount has a negative effect. This hypothesis is supported. Finally, the purpose of study 3 is to examine fit of type of quantity-scarce and message framing. We assume that in supply-scarce condition, it would be effective loss framing, while gain framing would be effective in demand-scarce condition. It is because demand-scarce promotes purchase confidence, but supply-scarce emphasizes the opportunity to regain damaged self-esteem. Taken together, In the usual economy, demand-scarce has more influence, to the contrary, in the recession, supply-scarce has much more effectiveness. in a recession, with no discount and supply-limit strategy, it would be much more effective. In addition, demand-scarce is fit gain framing, but supply-scarce is fit loss framing.

keywords
financial deprivation, scarcity message, price discounting, message framing

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