CAUGHT BETWEEN DESIRE AND DISAPPEARANCE: UNDERSTANDING COMPULSIVE BUYING BEHAVIOUR IN FASHION APPARELS RETAIL

Abstract

Scarcity marketing strategies are becoming more commonplace within the fashion industry and have sparked a wide range of worries about how the tactic affects consumers’ buying habits. This study provides an examination of the effects of perceived scarcity on compulsive buying behaviour as mediated by the arousal process, the need for uniqueness process (NFU), and the fear of missing out process (FOMO). Using the Stimulus-Organism-Response (S-O-R) model and based on its three components, a research model was developed and tested with the online fashion consumers of Pakistan. The data were obtained by using a structured questionnaire and analysed with Structural Equation Modelling (SEM) using IBM AMOS 23. The results of the measurement model showed good fit and validity. The results show that perceived scarcity had a significant effect on arousal and need for uniqueness and TVP had a significant effect on fear of missing out. In addition, the arousal, need for uniqueness, and FOMO were found to be the key determinants with significant positive correlations with compulsive buying behaviour, among which the arousal was found to be the strongest. The results confirm that scarcity-based marketing cues stimulate consumers’ emotional, cognitive, and social-anxiety responses, which subsequently encourage compulsive purchasing tendencies. This study is a continuation of the S-O-R model application in the fashion retail world and it is a part of the growing body of literature in consumer psychology in emerging markets. The results have implications for the world of fashion retailers, digital marketers and policymakers, as it demonstrates the psychological impact that can be created by scarcity-based promotional practices, and why more responsible and ethical marketing is required.