From Countdowns to Stock Limits: Unpacking the Impact of Scarcity Promotions on Individuals' Choice Set Size Preferences

ABSTRACT Consumers are increasingly influenced by scarcity promotions in their purchasing decisions, with limited‐quantity and limited‐time promotions being commonly used in everyday marketing. Previous studies on limited‐time and limited‐quantity promotions have primarily focused on consumer purchase behaviors within fixed choice sets. However, these studies have overlooked the impact of scarcity promotion types on consumers' preferences for different choice set sizes. This study explores how scarcity promotion (limited‐quantity vs. limited‐time) influences preferences for choice set size and also investigates the mediating role of perceived scarcity and the moderating effect of product type (hedonic vs. utilitarian) on choice set size. Three studies reveal that consumers prefer larger choice sets in limited‐quantity promotions compared to limited‐time promotions, with perceived scarcity acting as a mediator. Furthermore, the effect is moderated by product type. Specifically, consumers purchasing hedonic products tend to favor larger choice sets in limited‐quantity promotions, while those purchasing utilitarian products prefer larger choice sets in limited‐time promotions. The findings provide valuable insights for marketers, highlighting the importance of aligning promotional strategies with product characteristics and consumer perceptions of scarcity.