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Limited-edition advertising does not always work for luxury brands: The influence of consumption contexts

Tseng, Ting-hsiang; Huang, Hazel H.; Liu, Matthew Tingchi

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Authors

Ting-hsiang Tseng

Matthew Tingchi Liu



Abstract

Limited-edition advertising on a limited quantity available to be sold (LQS, limited quantity scarcity) is used to increase product value, thereby enticing consumers. This type of limited-edition advertising has been proven to be effective for luxury brands; as a result, its adoption has increased over the years. However, are limited editions effective across all consumption situations? The current study argues that limited-edition advertising may not always work as well as previously thought and that it is only effective when (1) consumers are in emotional (versus cognitive) consumption contexts, (2) the consumption is socially visible (versus invisible), and (3) the country of origin where the luxury product was made is favourable (versus unfavourable). The results of two experiments using 807 participants confirmed the study’s hypotheses. More importantly, the findings showed that limited-edition advertising had detrimental effects in a cognitive consumption context; that is, using limited-edition advertising in a cognitive consumption context decreased consumers’ purchase intentions. Theoretical and managerial implications are discussed.

Citation

Tseng, T., Huang, H. H., & Liu, M. T. (2021). Limited-edition advertising does not always work for luxury brands: The influence of consumption contexts. Journal of Consumer Behaviour, 20(5), 1204-1215. https://doi.org/10.1002/cb.1928

Journal Article Type Article
Acceptance Date Jan 27, 2021
Online Publication Date Feb 15, 2021
Publication Date Sep 14, 2021
Deposit Date Feb 4, 2021
Publicly Available Date Mar 28, 2024
Journal Journal of Consumer Behaviour
Print ISSN 1472-0817
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 20
Issue 5
Pages 1204-1215
DOI https://doi.org/10.1002/cb.1928
Public URL https://durham-repository.worktribe.com/output/1253074

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Copyright Statement
This is the peer reviewed version of the following article: Tseng, Ting-hsiang, Huang, Hazel H. & Liu, Matthew Tingchi (2021). Limited-edition advertising does not always work for luxury brands: The influence of consumption contexts. Journal of Consumer Behaviour 20(5): 1204-1215., which has been published in final form at https://doi.org/10.1002/cb.1928. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.




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