Get it Before it’s Gone: Understanding Scarcity Perceptions in Fashion: An Abstract

Retailers in the fashion industry are constantly employing new strategies in attempts to increase demand and revenue. The premise of such strategies often involves the use of scarcity perceptions which can take the form of various restrictions set by a firm in terms of purchase limits, purchase conditions, time limits, and product limits (Inman et al. 1997). Although numerous positive benefits may result from scarcity purchases, this study reveals a potential dark side to how marketers can use consumers’ perceptions of scarcity to capitalize on consumer buying behaviors. Such practices are labeled as “manufactured scarcity,” and combines both types of true scarcity (demand and supply) in an attempt to influence the “psychology of scarcity.” This term was identified by Kizilbash and Smart (1975) and refers to “the changing behavioral patterns of firms and individuals as a result of actual or perceived shortages (p. 64).” This is believed to potentially induce a state of panic or impulse buying.