This study examines how customers’ psychological situation influences their responses to two promotional cue types. More specifically, we propose that rejected customers are more likely to choose products promoted by a scarcity cue (this product is a limited edition) compared to a popularity cue (this product is popular among customers). Also, we propose that rejected customers indicate an increased need for uniqueness, which in turn entices customers to choose a product promoted by a scarcity cue (relative to a popularity one). The results of Study 1 show that rejected customers display a greater preference for a product promoted by a scarcity cue, and need for uniqueness underlies the effect of social exclusion on customers’ product choice. Study 2 provides further evidence that rejected (compared to accepted) customers display an increased need for uniqueness, which entices customers to choose a product promoted by a scarcity cue (relative to a popularity cue).

Introduction

Imagine that you see an advertisement for wine. The wine is a limited edition, and the ad copy says, “this product is limited edition.” Conversely, the wine is a best seller, and the ad copy says, “this wine is a best seller among consumers.” How would you react to these promotions? What factors influence your reaction toward these promotions? Does your current psychological condition (e.g., social exclusion) affect your response, and choice decision accordingly? More specifically, would your reaction be different if you felt rejected or accepted at the time when you are exposed to these promotions? Would you display more (less) favorable reaction toward the wine promoted by a scarcity cue (the wine is limited edition) or a popularity cue (the wine is a best seller)? If so, what would be the underlying factor in your reaction? Answering these questions would help managers create an effective promotional campaign and targeting. To date, a plethora of studies have examined how consumers react to scarcity, and popularity cues (e.g., Gierl, Plantsch, & Schweidler, 2008; Wu & Lee, 2016), but these studies have not taken into account customers’ psychological condition at the time when customers are exposed to promotional cue types. For example, Wu and Lee (2016) find that when consumers purchase a product for themselves, they seek to be unique.