Reviving the experiential store: the effect of scarcity and perceived novelty in driving word-of-mouth

Author:

Pape DeniseORCID,Toporowski WaldemarORCID

Abstract

PurposeExperiential stores offer potential for emotional brand-consumer connections and word-of-mouth (WoM) generation. Past research links the lifecycle of such stores with perceived novelty, a defining characteristic that has not received sufficient recognition. Scarce products are identified as a promising strategy to enhance novelty perceptions. Additionally, the authors differentiate between electronic and interpersonal WoM, and consider need for uniqueness (NFU) as a relevant personality variable.Design/methodology/approachThis study encompasses three experiments that seek to shed light on suggested relationships. The first two experiments explore the interplay between scarcity, perceived novelty, and WoM. Moving forward, the third study delves deeper into the matter, scrutinizing the conditions under which scarce products manifest their utility in experiential stores.FindingsThe findings indicate that incorporating scarce products can rejuvenate the novelty aspect of experiential stores and promote positive WoM outcomes. Additionally, including NFU as a personality variable presents a communication dilemma, as high NFU individuals tend to engage more in electronic WoM but less in interpersonal WoM. However, this relationship is contingent on circumstances, with high NFU individuals showing a greater inclination towards interpersonal WoM when the probability of being imitated is low.Practical implicationsThis study offers practical guidance for brand managers aiming to sustain the appeal and success of their experiential stores, as well as for commercial real estate managers seeking to revitalize vacant spaces in the post-COVID-19 era.Originality/valueThis pioneering study investigates the role of perceived novelty and scarce products in experiential stores, aiming to identify optimal conditions for favorable consumer responses. It also contributes to research on the forward spillover effect and underscores the importance of interpersonal proximity in WoM investigations.

Publisher

Emerald

Subject

Business and International Management,Marketing

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