The Effects of Social Popularity and Deal Scarcity at Different Stages of Online Shopping

The positive effects of social popularity (i.e., information based on other consumers’ behaviors) and deal scarcity (i.e., information provided by product vendors) on consumers’ consumption behaviors are well recognized. However, few studies have investigated their potential joint and interaction effects and how such effects may differ at different timing of a shopping process. This study examines the individual and interaction effects of social popularity and deal scarcity as well as how such effects change as consumers’ shopping goals become more concrete. The results of a laboratory experiment show that in the initial shopping stage when consumers do not have specific shopping goals, social popularity and deal scarcity information weaken each other’s effects; whereas in the later shopping stage when consumers have constructed concrete shopping goals, these two information cues reinforce each other’s effects. Implications on theory and practice are discussed