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DO SOCIAL PROOF AND SCARCITY WORK IN THE ONLINE CONTEXT?
Abstract
Persuasion principles, including social proof and scarcity (Cialdini, 2001), are frequently used online, but little is known about their effectiveness in this context. This study aimed at investigating whether social proof and scarcity heuristics influenced consumer responses towards the online ticketing store of Dutch National Opera. Participants (N=268, recruited among previous opera visitors) were shown the ticketing website that varied in the presence of scarcity and social proof messages. We found a positive effect of scarcity on time pressure, but a negative effect on purchase intention. Our results suggest that using persuasion principles for certain consumer groups can backfire.
... Aggarwal and Vaidyanathan's (2003) study supports this, demonstrating that the presence of a limited-time notice has a positive effect on participants' enthusiasm to purchase and lessens their motivation to look for a better deal. Contrary to this result, Fenko, Keizer, and Pruyn (2017) showed a negative effect of scarcity notices on purchase intention; specifically, the limited quantity of remaining opera tickets was considered to be for 'bad seats'. Prospective customers perceived that many people had already bought the product, and they no longer perceived the product as scarce and of the same quality as the product normally was. ...
... However, more support can be found for the argument that limitedtime notices create a sense of urgency (Hanna, Swain, and Berger 2016) and a higher desirability of the product (Gierl, Plantsch, and Schweidler 2008), leading to an increase in consumers' purchase intention (Godinho, Prada, and Garrido 2016;Jha, Dutta, and Koksal 2019). In addition, the notion that scarcity notices can imply that many people have already bought the product has been highlighted in the context of limited-quantity notices (Fenko, Keizer, and Pruyn 2017). Accordingly, in the present study, the assumption is made that an availability message affects consumers' purchase intention. ...
... Previous research investigating scarcity messages indicating limited time has varied in the amount of time given, ranging from an hour to multiple days. Too short a time limit and feelings of competitive time pressure can lead to lower evaluations of the product quality and desirability, and ultimately to a lower probability that customers will perform the intended behaviour (Hanna, Swain, and Berger 2016;Fenko, Keizer, and Pruyn 2017). Similar to Guo, Xin, and Wu (2017), in the present study, the time of the promotion was limited to 'Only 1 hour and 14 minutes left'. ...
In their web stores, retailers are increasingly using scarcity as a strategy to influence customers’ perceptions and purchase behaviour. This study aims to investigate the effect of limited-time promotions on purchase intention while examining the mediating roles of perceived scarcity and competitive arousal as predictors as well as the moderating role of consumers’ cultural background. An experimental survey is carried out with two conditions for a product offer in a web store: an offer with a limited-time availability notice; and an offer with a non-limited (in-stock) notice. In total, 208 Europeans (originating from Italy, an individualistic-masculine society, and the Netherlands, an individualistic-feminine society) participated in the study. The results demonstrate that a limited-time notice does not directly generate higher purchase intention compared to a non-limited-time notice. Interestingly, another major finding pertains to the indirect effects on purchase intention. Specifically, a limited-time availability notice creates higher perceived scarcity and subsequently activates higher perceived competition, which, in turn, leads to higher purchase intention. However, this indirect effect on purchase intention emerged only for the Italian consumers, and not for the Dutch consumers, participating in this study.
... Investigating if social proof, one of the most popular principles of persuasion in the online realm (Fenko et al., 2017), is also effective for the proliferation of costly behavior, such as the making of pro-environmental investments, is the aim of this paper. More specifically we focus on the very first phase of making a larger investment, namely the orientation phase, by examining if the positive effect of social influence messages found for simple behavior remains relevant for the first step of information seeking before making more costly investment decisions. ...
... For this study we focus on examples and research related to the pro-environmental behavior contexts, however, variations of social proof heuristics apply to a large variety of contexts, such as influencing the purchase of tickets for culture or entertainment events (Fenko et al., 2017). Meta-analysis has indicated that there are various ways of successfully utilizing social influence in the field of pro-environmental behavior (Abrahamse & Steg, 2013). ...
One of the most popular techniques of persuasion in online marketing is social proof, also referred to as social validation. It takes advantage of the fact that when other individuals have decided in favor of a particular behavior people are more likely to follow that behavior as it is perceived as more valid. Yet there is a theoretical reason to be skeptical about the effectiveness of this persuasion technique for the encouragement of more costly investment decisions taken under high uncertainty. This study investigated the effectiveness of social proof in influencing consumer responses to calls for action on a bank’s sustainable home improvement website. A first field experiment investigated whether participants engaged more with a webpage that provided a personalized testimonial or informed users that thousands of other clients had used the bank’s sustainable home improvement services. A second field experiment encouraged clients to use the bank’s services to obtain solar panels and we again investigated whether clients engaged more with a webpage that provided a personalized testimonial rather than without such a testimonial. Clients were directed to these webpages through a newsletter that is distributed to half a million clients of the bank. Overall, our evidence suggests that messages of social proof are ineffective at urging customers to consider larger pro-environmental household investments, let alone making those investments.
... However, consumers' perception of price unfairness can lead to aversion towards dynamic price promotions, such as scarcity messages [11]. Fenko, Keizer [12] highlight that educated customers might suspect the retailers' intentions to manipulate their purchasing decisions and can be resistant to scarcity messages. Offering customers scarcity messages and personalized offers from the smart fitting room has the potential to create a more favorable customer experience than not providing any offers. ...
... Other authors also link trust and risk perception. For example, Fenko et al. (2017) highlight that scarcity impacts customer attitudes and that social proof and opinions of others are important to customers. Bucko et al. (2018) similarly note that social proof from other customers confirms product quality and that its shortage creates urgency, considering these key factors influencing online purchases. ...
This paper investigates the impact of four demographic variables and four perceptual drivers identified through a review of the existing literature on adopting subscription-based e-commerce models. Seven hypotheses were tested on a convenience sample of 202 respondents from Croatia. Significant differences in subscription model acceptance were observed across age groups, while education level, employment status, and disposable income showed no significant relation to subscription model adoption in Croatia, although studies in other countries have indicated otherwise. This study also examined four factors (perceived trust, risk, usefulness, and ease of use) described with 21 critical success dimensions. The results showed positive relationships with perceived trust, usefulness, and ease of use and a negative relationship with perceived risk. Enhancing trust, usefulness, and ease of use while reducing perceived risks can boost subscription-based e-commerce adoption. Significant differences in perceived trust, risk, and usefulness were found between users of multiple products/services and non-users but not in perceived ease of use. These findings provide valuable insights for future scientific research on subscription-based models, given their growing popularity in e-commerce and the limited existing research. Additionally, this paper offers practical implications for businesses by enhancing their understanding of customers and the Croatian e-commerce market and by proposing innovative strategies and promotional approaches based on the research outcomes.
... First, Cialdini's principles are currently the most widely used in online advertising [11,33,53,80] among both academics and practitioners. As advertisers are familiar with Cialdini's principles, they might apply his principles to shape persuasive tactics in advertising emails. ...
... But since eCommerce is not bothered by the queue challenge and because perceived usefulness is based on online information, which is intangible, conformity messages and scarcity messages are more efficient marketing strategies in the eCommerce environment than in offline marketing (Mou and Shin, 2018;Huang et al., 2020). Thus, conformity messages and scarcity messages were widely used to boost sales in online marketplaces (Fenko et al., 2017;Kim et al., 2021). OpenTable is not an exception, and it provides businesses the option of displaying conformity messages and scarcity messages on their SERPs. ...
We propose an online impression-management conceptual model and present a two-step approach to unfold the importance of multiple attributes on a restaurant marketplace mobile app. First, our study uses OpenTable platform data to provide insights into the visual attractiveness of restaurant images. In total, 92,934 images were scraped and further labeled through the Tencent Multi-Label API, which identified six categories of image cues. Second, an exploratory Choice-Based Conjoint (CBC) analysis was performed to assess the importance of attributes at different levels from 746 valid survey responses. Furthermore, we performed Latent Class Analysis (LCA) to categorize the consumers by their choice features in which we identified two groups: “visual-image-cues responsive” and “price-rating-cue responsive.” These categories advance the proposed online impression-management conceptual model and indicate that visual information is the most important attribute in decision making. Our study provides empirically based suggestions to enable practitioners to strengthen their m-commerce marketing strategies.
... Signals are crucial when information uncertainty of the product appears [Drake et al., 2015]. When facing such an uncertain situation, high UA individuals need to rely on extra signals that help to relieve their uncertainty and risk perception [Jung & Kellaris, 2004;Fenko et al., 2017]. In this case, a quality label may be extremely helpful to reduce high UA individuals' perceived risk for purchasing luxury online. ...
Many luxury brands and online retailers are struggling with how to sell luxury products online. Purchasing such premium priced brands online implies a high level of risk for consumers since their evaluation of the products cannot be based on direct, tangible experiences with the product. This study suggests that retailers can diminish the perceived risk by adding a quality label to a luxury product. However, the effectiveness of such quality label depends on the cultural orientation of the consumer. As such, we expect a quality label only to be effective for high uncertainty avoidance consumers. An analysis of secondary data from A.T. Kearney reveals a negative relation between a country's level of uncertainty avoidance (UA) and how favorable its consumer base is for transacting online, which might be an indication that even general online consumer behaviors (not luxury products per se) are perceived as highly risky in high uncertainty avoidance cultures. In addition, an experimental study using a 2 (Quality label vs. no label) by 2 (luxury vs. non-luxury purchase) between-subjects design reveals that for a luxury brand, a quality label reduces the risk perception and in turn leads to higher purchase intention and attitude toward the brand for high UA individuals.
Extant literature has largely backgrounded the psychological processes of those being persuaded in online persuasion situations. If we do not examine these processes, we may not be able to fully understand or measure the impact of persuasive artefacts outside of their observable outcomes. In response to this issue, this paper conceptualizes the persuasion process as a state of psychological transition with respect to the individual being persuaded (cf. Kelly 1955; Stojnov 2003). We do this by drawing on the work of George Kelly and personal construct theory, and illustrate how this theory may be useful in better understanding both the process of persuasion and its outcomes. Finally, we discuss how online persuasion is further challenged by the multitude of ways in which the digital artefact can materialize.
This study examines the relative effect of two types of scarcity messages (limited-quantity and limited-time) on consumers' purchase intentions. The moderating influence of brand concept (functional or symbolic) on this relationship is also examined. Drawing on the results of two studies, the authors conclude that the limited-quantity messages are more effective than limited-time messages in influencing consumers' purchase intentions. This differential impact is further enhanced for symbolic brands. Consumer competition is found to mediate the effect of scarcity messages on purchase intentions.
Two experiments were conducted to evaluate the effectiveness of two online persuasion claims: limited product availability (e.g., only 3 items left) and product popularity (e.g., 94% of consumers bought this product after viewing this site). The popularity claim appeared to enhance quality perception, particularly among highly risk-averse consumers, and purchase intention. We attribute these findings to the quality signaling effect and the bandwagon effect of the claim. On the other hand, the limited availability claim exerted no influence: low message credibility and the lack of psychological reactance are deemed to be possible reasons for the insignificant effect of the claim.
The authors report a study of the effects of price, brand, and store information on buyers' perceptions of product quality and value, as well as their willingness to buy. Hypotheses are derived from a conceptual model positing the effects of extrinsic cues (price, brand name, and store name) on buyers' perceptions and purchase intentions. Moreover, the design of the experiment allows additional analyses on the relative differential effects of price, brand name, and store name on the three dependent variables. Results indicate that price had a positive effect on perceived quality, but a negative effect on perceived value and willingness to buy. Favorable brand and store information positively influenced perceptions of quality and value, and subjects' willingness to buy. The major findings are discussed and directions for future research are suggested.
This article proposes that compared with a promotion regulatory focus, a prevention focus increases sensitivity to the advertiser's manipulative intent. Specifically, when message cues make manipulative intent moderately salient, prevention-focused people are more likely to activate persuasion knowledge and give less favorable brand evaluations than promotion-focused people. When message cues make manipulative intent highly salient or when manipulative intent is not salient, brand evaluations do not differ across regulatory foci. In addition, externally priming suspicion of manipulative intent makes promotion-focused people react similarly to prevention-focused people, suggesting that regulatory focus affects vigilance against persuasion.
In an experiment (N = 99), effects of subtle and prominent online advertising formats, respectively sponsored content and banner ads, on audience reactions toward the advertisement are tested. In addition, the role of several persuasion knowledge elements such as understanding of persuasive intent and ad skepticism in processing online advertising formats is investigated. Results show that participants find the sponsored content more informative, more amusing, and less irritating than the banner ad. With respect to persuasion knowledge, recognition of the advertising format, understanding of persuasive intent, and ad skepticism are higher for banner ads than for sponsored content. Furthermore, ad skepticism seems to be strongly related to perceived advertising value. These new findings show that persuasion knowledge plays a role in the appreciation of subtle and prominent online advertising formats.
This study examines the age at which children reach adult levels of cognitive advertising competences. In a computer-assisted survey of 294 children (8–12 years) and 198 adults (18–30 years), we investigate at what age children reach adult levels of (1) advertising recognition, and (2) understanding of advertising's selling and persuasive intent. Our findings show that around the age of 9–10, most children have reached an adult level of advertising recognition. However, at age 12, children have still not acquired an adult-like understanding of advertising's selling and persuasive intent. Finally, children's understanding of the selling intent of advertising develops before their understanding of its persuasive intent.
In this article, we argue that consumer behavior is often strongly influenced by subtle environmental cues. Using grocery shopping as an example (or a "leitmotif," if you wish), we first argue that the traditional perspective on consumer choice based on conscious information processing leaves much variance to be explained. Instead, we propose that many choices are made unconsciously and are strongly affected by the environment. Our argument is based on research on the perception-behavior link and on automatic goal pursuit. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This report is the fourth in a series from a large scale study that examines the effects of three office color interiors (white, predominately red, and predominately blue-green) on worker productivity. Matched on relevant variables, participants were assigned to one of three offices and performed simulated office tasks for four consecutive days. Productivity was measured through workers' task performance and task accuracy, taking into account individual differences in environmental sensitivity (i.e., stimulus screening). The findings suggested that the influences of interior colors on worker productivity were dependent upon individuals' stimulus screening ability and time of exposure to interior colors. Implications of office workers' long-term productivity are discussed in relation to issues concerning the visual complexity of interior environments. © 2007 Wiley Periodicals, Inc. Col Res Appl, 32, 130 – 143, 2007
The scarcity effect is a powerful social-influence principle used by marketers to increase the subjective desirability of products. This study explores cross-national differences in proneness to the scarcity effect and attempts to explain observed differences in terms of boundary conditions. Results of a shopping simulation experiment show a positive effect of scarcity on purchase intent and a greater proneness to such among participants from a lower- (U.S.) versus higher- (France) context culture. Moreover, the scarcity effect is moderated by product familiarity, uncertainty avoidance, and need for cognitive closure. Differential familiarity levels may help explain the observed cross-national differences. Managerial implications concern the conditions under which marketing appeals based on scarcity should be more (versus less) persuasive. © 2004 Wiley Periodicals, Inc.
How do arousal-inducing contexts, such as frightening or romantic television programs, influence the effectiveness of basic persuasion heuristics? Different predictions are made by three theoretical models: A general arousal model predicts that arousal should increase effectiveness of heuristics; an affective valence model predicts that effectiveness should depend on whether the context elicits positive or negative affect; an evolutionary model predicts that persuasiveness should depend on both the specific emotion that is elicited and the content of the particular heuristic. Three experiments examined how fear-inducing versus romantic contexts influenced the effectiveness of two widely used heuristics-social proof (e.g., "most popular") and scarcity (e.g., "limited edition"). Results supported predictions from an evolutionary model, showing that fear can lead scarcity appeals to be counter-persuasive, and that romantic desire can lead social proof appeals to be counter-persuasive. The findings highlight how an evolutionary theoretical approach can lead to novel theoretical and practical marketing insights.
The authors report a study of the effects of price, brand, and store information on buyers’ perceptions of product quality and value, as well as their willingness to buy. Hypotheses are derived from a conceptual model positing the effects of extrinsic cues (price, brand name, and store name) on buyers’ perceptions and purchase intentions. Moreover, the design of the experiment allows additional analyses on the relative differential effects of price, brand name, and store name on the three dependent variables. Results indicate that price had a positive effect on perceived quality, but a negative effect on perceived value and willingness to buy. Favorable brand and store information positively influenced perceptions of quality and value, and subjects’ willingness to buy. The major findings are discussed and directions for future research are suggested.
Average effects of influence strategies on consumers' attitudes and behaviors have been studied extensively. Less is known about the relative size of individual differences in these effects, despite recognition of their importance in social psychology. Two experiments use repeated exposures to influence strategies to identify the effects of each social influence strategy for individual participants. Study 1 provides evidence of large variation in the effects of influence strategies, such that for many participants the estimated effect of using an influence strategy is negative, even though the effect of that strategy is significantly positive on average. Study 2 replicates these findings over three sessions, each a week apart. The observed variation in responses to influence strategies cannot be attributed to transient intra-individual variation (e.g., strategy × mood interactions). Meta-judgmental measures of personality constructs (e.g., need for cognition) explain only a small portion of the observed variance, suggesting the importance of directly modeling heterogeneity in responses to influence attempts. These results are important for interactive marketeers since they indicate that different influence strategies substantially differ in their effects on individual consumers and should thus be adapted to individuals.
Although sport scientists have examined a number of factors that increase attendance at sporting events (e.g., promotions, ticket cost), the impact of scarcity has remained uninvestigated. Based on past research in consumer psychology, it was hypothesized that individ- uals would report a greater interest in attending a sporting event in which few tickets remained (i.e., the scarce condition) than when tickets remained abun- dant (the not scarce condition). Additionally, previous studies have predicted that persons with a high level of identification with a target team would be more inter- ested in attending a game involving that team than those with a low level of identification. An interaction between scarcity and identification was not expected; thus, the scarcity manipulation was predicted to have an equal effect on both types of fans. The hypotheses were tested by assessing the identification of 108 uni- versity students and presenting them with scenarios describing an upcoming game in which few or many tickets were available. The participants reported their desire to attend the game, and the results provided strong support for each hypothesis. Discussion includes the motivation underlying the scarcity effect in sport.
Shelf-based scarcity in the form of relative stocking level depletion significantly affects consumer preferences (van Herpen et al. 2009). While both popularity and quality inferences are induced by stocking-level depletion, this paper demonstrates that popularity (rather than quality) inferences are the primary driver of the effect. Shelf-based scarcity is shown to have an impact in the presence of other signals, such as brand names and quality ratings, which indicates its effect may be widespread. However, its effect on preferences is greatly decreased by the presence of strong prior preferences and/or price promotions, indicating that shelf-based scarcity is likely to affect choices when consumers lack strong prior preferences and under conditions where price promotions are either not present or are similar across alternatives.
Commodity theory (Brock, 1968) deals with the psychological effects of scarcity. According to the theory, scarcity enhances the value (or desirability) of anything that can be possessed, is useful to its possessor, and is transferable from one person to another. This article introduces commodity theory to the marketing literature, reports a meta-analysis of studies designed to test the theory, and discusses the marketing implications of the theory along with suggestions for future marketing research.
From business owners to busboys, the ability to harness the power of persuasion is often an essential component of success in the hospitality industry.
Prior research provides controversial findings as to whether products become more or less desirable when accompanied by product scarcity. As there are many options relevant for retailing to generate product scarcity, it seems beneficial to identify the conditions under which scarcity should be applied as an instrument for sales promotion. We differentiate our considerations by the type of scarcity, the product category and by the existence of other purchase arguments for the scarce product. The main result of our empirical investigations is that these three conditions are relevant factors which influence the direction of scarcity's effect on product desirability.
Scarcity strategies are employed by marketers to influence consumer decision making. Many famous brands have been designed and produced for the purpose of as being marketed as limited-edition products to intensify consumer desire and intention to purchase them. However, very few studies have simultaneously integrated relevant constructs to explain the phenomenon of scarcity purchasing. To fill this void, this study develops a comprehensive research model in order to fully understand how scarcity affects consumer value perception and purchase intention. Simultaneously, two competing models are developed to compare the explanation power of Lynn's Scarcity–Expensiveness–Desirability (S-E-D) model and Synde and Fromkin's desire for uniqueness model. The results suggest that the effects of scarcity on purchase intention through perceived uniqueness, perceived sacrifice and perceived value are stronger than the scarcity effects through assumed expensiveness, perceived quality, perceived sacrifice and perceived value.
We examined the actions of a customer when inferring product information from electronic word-of-mouth (eWOM) material at a website. We developed a customer purchase intention model and simulated various eWOM levels within this, adopting an objectivity–subjectivity dichotomy, and considering quality and preference as the major antecedents of customer purchase intention. We inferred the information that the customers had obtained from the eWOM by categorizing the customers’ responses. The eWOM was parameterized using mean and variance; products that were categorized into quality and preference goods. We considered four cases in which customers infer different product information and exhibit different reactions. Items for quality and preference goods were developed by using a card-sorting method. An experimental survey was conducted on 121 Korean Internet shopping mall users. The hypotheses were partially supported using a Partial Least Squares path comparison method. Overall, our study should provide guidance to firms in their managing eWOM systems by identifying how customers react to them at various levels.
When most people think of “persuasive design” in the context of web design, they think about how to persuade a typical online
shopper to buy a cool new gadget, a stylish new handbag, or a popular new book. Persuasive design absolutely plays a role
in those scenarios, but convincing people to buy something is only one of the places you might employ the principles of persuasion.
When I talk to people in government or non-profit about persuasive design, their typical knee-jerk reaction is “that’s not
for me.” When we dig a bit in to their reasoning, it typically comes down to one of two things. They either justify their
position by claiming that they are not selling anything, or they take the high moral ground that “persuading” is akin to “tricking”
– and, since they are government or non-profit, it’s an extra large no-no to trick somebody. In this paper, I will delve deeper
in to the how various principles of persuasion can be used for things other than selling. I will generalize the conversation
from its more common domain of retail and selling and explain how the ideas behind persuasive design can and do apply to other
domains such as government and non-profit. I will provide numerous examples throughout to persuade the reader.
If leadership, at its most basic, consists of getting things done through others, then persuasion is one of the leader's essential tools. Many executives have assumed that this tool is beyond their grasp, available only to the charismatic and the eloquent Over the past several decades, though, experimental psychologists have learned which methods reliably lead people to concede, comply, or change. Their research shows that persuasion is governed by several principles that can be taught and applied. The first principle is that people are more likely to follow someone who is similar to them than someone who is not Wise managers, then, enlist peers to help make their cases. Second, people are more willing to cooperate with those who are not only like them but who like them, as well. So it's worth the time to uncover real similarities and offer genuine praise. Third, experiments confirm the intuitive truth that people tend to treat you the way you treat them. It's sound policy to do a favor before seeking one. Fourth, individuals are more likely to keep promises they make voluntarily and explicitly. The message for managers here is to get commitments in writing. Fifth, studies show that people really do defer to experts. So before they attempt to exert influence, executives should take pains to establish their own expertise and not assume that it's self-evident. Finally, people want more of a commodity when it's scarce; it follows, then, that exclusive information is more persuasive than widely available data. By mastering these principles-and, the author stresses, using them judiciously and ethically-executives can learn the elusive art of capturing an audience, swaying the undecided, and converting the opposition.
In theories and studies of persuasion, people's personal knowledge about persuasion agents' goals and tactics, and about how to skillfully cope with these, has been ignored. We present a model of how people develop and use persuasion knowledge to cope with persuasion attempts. We discuss what the model implies about how consumers use marketers' advertising and selling attempts to refine their product attitudes and attitudes toward the marketers themselves. We also explain how this model relates to prior research on consumer behavior and persuasion and what it suggests about the future conduct of consumer research. Copyright 1994 by the University of Chicago.
Buy now or cry later'. Do scarcity messages work in online shopping?: an investigation into the functionality of scarcity as an online persuasion measure within the fashion and travel industry. Unpublished manuscript, Faculty of Behavioural Sciences
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