This study aims to investigate how brand advertisements that simultaneously deploy limited edition product (LEP) cues and heritage cues influence consumers’ perceived brand value and their willingness to pay premium (WTP). It further examines the moderating role of consumer mindset (fixed vs growth) in shaping these effects.
Two experiments were conducted across distinct product categories, shoes (semi-durable) and cars (consumer durables). Hypotheses were tested using the Hayes Process Macro to assess mediation and moderation effects.
Results reveal that limited quantity scarcity (LQS) cues significantly enhance WTP through increased perceived brand value, outperforming limited time scarcity (LTS) messages. The interaction between LEP and heritage cues further amplifies this effect. Consumer mindset moderates these pathways: growth mindset individuals respond more favourably to LQS cues, whereas fixed mindset individuals derive greater value from heritage cues. These effects are mediated by perceived brand value across both product types. Results demonstrate a risk of brand equity erosion via overused or poorly integrated heritage cues for consumer durables.
This research extends scarcity and branding literature in three ways: 1) differentiating the impact of LQS vs LTS, clarifying which scarcity message drives premium pricing intentions; 2) introducing consumer mindset as a key psychological moderator in the LEP–heritage cue synergy and 3) demonstrating cross-category generalizability across semi-durables and consumer durables.
