The Impact of Scarcity on Consumers' Impulse Buying Based on the S-O-R Theory

PurposeThe global COVID-19 pandemic impacted the healthcare systems of every nation. The scarcity of medical protective equipment led to impulse buying at the early stages of the COVID-19 outbreak in China which resulted in stockpiling and the increase of prices by retailers and insufficiencies among frontline workers. This situation impacted epidemic control work and market order and is the context from which this paper identifies how the scarcity of medical protective equipment affected Chinese consumers' impulse buying based on the theories of S-O-R model and bandwagon effect. The research provides insight into the mechanism of mediation (fear of missing out) and moderation (bandwagon) in the relationship between scarcity and impulse buying. Design/Methodology/ApproachThis study uses convenience sampling, surveying 488 Chinese consumers through an online questionnaire. Smart-PLS was used to test the hypotheses. FindingsThe empirical findings demonstrate that scarcity makes consumers fear missing the chance of getting protective medical equipment, leading ultimately to impulse buying. Besides, the scarcity effect on consumers' impulse buying was found to depend on other consumers' follow up behaviour in such emergency situations. Research Limitations/ImplicationsThe findings provide managerial and theoretical insight and a point of reference for businesses in the implementation of a scarcity strategy. The findings will also prove useful to the Chinese Risk Response Department as it continuously improves its responses to the risk of consumers' impulse buying during a pandemic. Originality/ValueThis study consolidates and takes research forward in the areas of impulse buying and consumer behaviour, confirming the mediating effect of fear of missing out and the moderating effect of the bandwagon in the relationship between scarcity and impulse buying.