Buy Now Or Regret Later: The Irresistible Pull Of Scarcity Marketing In Retail

Abstract

Purpose: The research explored the multifaceted purpose of scarcity marketing strategies in boosting sales. It delved into the psychological mechanisms driving consumer behavior, emphasizing the impact of limited-time offers and stock scarcity on impulse purchases across Demographics. Design/methodology/approach: Descriptive cross-sectional methodology was carried out across age, gender, employment status, monthly earnings, and hometown from 250 respondents. The questionnaire was constructed using Dichotomous questions, multiple-choice questions as well as Likert scale questions. Findings: The results show that females are influenced by various types of scarcity marketing. The presence of "only X pieces left" or "Offer available till stock lasts" can trigger FOMO and impact purchase decisions differently. The personal values and principles of the respondents play a significant factor in trusting and enduring relationships with retailers. Respondents were classified into three groups based on Factor analysis output: successful persuasion, inducing impulse purchases, and scarcity preference. Research implications: Marketers aiming to optimize sales through scarcity marketing strategies should understand the significance of gender and ethical considerations to foster trust. Practical implications: The marketing strategies of brands should differ based on the gender of the decision maker. Social implications: Insights into ethical considerations highlight the importance of transparent and responsible marketing practices, shaping consumer trust and relationships with retailers within communities. Originality/value: The research offers novel insights into the efficacy of scarcity marketing, highlighting its impact on consumer behavior and ethical considerations in the state of Gujarat.