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Examining scarcity in mobile promotion and purchase intention: the role of location

ABSTRACT This study explores the impact of scarcity messages in mobile coupons on purchase intentions among smartphone users, as well as the moderating effect of location and product type. Psychological reactance theory serves as the overarching theory for this study. Two experiments were conducted. ANOVA and ANCOVA were used to test the hypotheses. The findings show that scarcity tactics in mobile coupons work differently with respect to the location of coupon recipients and are further impacted by the product type. Quantity limit scarcity messages are the most effective way to encourage consumers’ purchase intentions when they are at home, while time limit scarcity messages are a better way to stimulate consumer purchase when they are in a store. By comparison, vague scarcity is an effective way to encourage consumers to purchase high-involvement products when they are at home, while for low-involvement products vague scarcity can be more effective in encouraging consumer purchase while they are in a store.