An examination of the role of booking lead time in consumers' reactions to online scarcity messages. (January 2019)

• Record Type: Journal Article
• Authors: Song, Myungkeun; Noone, Breffni M.; Han, Rachel J.
• Is Part Of: International journal of hospitality management. Volume 77(2019)
• Page Start: 483
• Page End: 491
• Publication Date: 2019-01
• Subjects: Scarcity messages -- Booking lead time -- Booking intentions -- Perceived message credibility -- Perceived sellout risk; Hotel management -- Periodicals; Restaurant management -- Periodicals; Food service management -- Periodicals; Hôtels -- Gestion -- Périodiques; Restaurants -- Gestion -- Périodiques; Services alimentaires -- Gestion -- Périodiques; Food service management; Hotel management; Restaurant management; Periodicals; 647.94
• DOI: 10.1016/j.ijhm.2018.08.012
• Languages: English
• ISSNs: 0278-4319

Abstract

Highlights: Booking lead-time moderates the scarcity message type-perceived message credibility relationship. When booking lead-time is long, a unit scarcity message is perceived as more credible than an option scarcity message. When booking lead-time is short, the difference in perceived message credibility will be less pronounced. An indirect effect of scarcity message on booking intentions thru perceptions of credibility and sellout risk exists for long booking lead-time. Abstract: Scarcity messaging is frequently employed by travel marketers to drive consumer conversion rate in the online sales environment. This study examines the effects of two types of scarcity messages, unit and option scarcity, on consumer booking intentions and explores the role of booking lead time on the scarcity messaging-booking intentions relationship in the context of the purchase of hotel accommodation. Findings suggest that when booking lead-time is long, unit scarcity messages will be more effective than option scarcity messages in influencing booking intentions as they are perceived as more credible, and induce higher perceptions of a sellout risk. When booking lead-time is short, consumers perceive no differences in the credibility of unit and option scarcity messages: both are equally effective in driving booking intentions. This research provides marketers with guidance on how and when to leverage scarcity appeals to drive consumer conversion rate.