The recent publication by Prof. Dr. Michael Steiner, Prof. Wayne D. Hoyer, Prof. Dr. Manfred Krafft, Lena Kamp, and Dr. Christine Feddersen-Arden in the Journal of Retailing, is now also featured in Markenartikel Magazin, a German trade magazine dealing with branded products and services, and retailing! 

The article explores how aggressive scarcity strategies, particularly fast sellouts of limited edition (LE) products, can actually damage rather than enhance a brand’s long-term value.

Drawing on findings from the study from four empirical studies, the authors argue that consumers often perceive rapid sellouts as unfair or frustrating, which can trigger negative emotions like anger. Rather than increasing desire, such experiences can erode trust in the brand and reduce repurchase intentions, especially when customers feel excluded or manipulated by artificial scarcity.

A key insight is the differentiation between product types. For emotionally driven, hedonic products such as luxury items or collectibles, fair distribution mechanisms, like raffles via branded apps, can help mitigate the negative effects of immediate sellouts. In contrast, for utilitarian products, any form of scarcity tends to generate frustration and harms brand value across the board. The study most importantly highlights that not all scarcity signals create desirability; in many cases, they undermine brand equity.

In summary, marketers are called to critically reassess their use of scarcity-based tactics. Creating exclusivity through limited editions can be effective, but only when executed in a way that consumers perceive as fair and accessible. Especially for hedonic products, the method of distribution is just as important as the limitation itself. Brands that fail to strike this balance risk alienating their customer base and damaging long-term loyalty.