Some merchants limit products’ supply to activate consumers’ desirability for products and get satisfactory sales volume. This phenomenon has attracted the attention of practitioners as well as academics. In this research, we studied how consumers’ purchase intention would change when the product’s supply quantity limit was different based on arousal-based explanation and consumer information processing perspective. We argued that product information would affect consumers’ purchase intention distinctly under different levels of quantity limit. A survey was conducted to test the proposed hypotheses. The result showed that quantity limit moderated the relationship between product cost performance and consumers’ purchase intention with an inverted-U shape. Within some extent of quantity limit, consumers’ purchase intention would be strengthened when less products were supplied. Both an extremely high and a slightly low level of quantity limit would make consumers less likely to purchase products even with good cost performance. Our research has both practical and academic implications.
Li, Hui; Xu, Yunjie; and Huang, Lihua, "IS THERE AN OPTIMAL POINT TO LIMIT PRODUCT QUANTITY? A SURVEY EVIDENCE" (2016). PACIS 2016 Proceedings. 353.