A quantitative study on the effect LQS & LTS has on purchase intention in an online context

Abstract: Background:Scarcity refers to a basic economic problem, the gap between limited resources and limitlesswants. This situation requires people to make decisions on how to allocate resourcesefficiently in order to satisfy basic needs and as many additional wants as possible. Scarcitycan affect the consumers ability to source and process information with regards to acquiring ascarce product. Scarcity can be divided into two cues, LQS and LTS and these ques can helpunderstand a consumer's purchase intention.Purpose:The purpose of this paper is to explain the effect increasing LQS & LTS has on onlinepurchase intention onlineMethodology:This thesis employed a quantitative research method as well as a deductive approach with anexplanatory goal. The study was cross-sectional in nature. The data was collected via anonline questionnaire sent out to an online community consisting of around 20,000 members,which obtained 272 valid replies that passed the qualification question by purposive samplingThe data was tested using reliability testing, validity testing, and significance testing.Furthermore two simple linear regression analysis to test the two hypotheses formed in theconceptual framework.Findings:The findings of this paper states that LQS and LTS both show a significant positive impact onpurchase intention in an online context. LTS was shown to have a higher significant impacton purchase intention when comparing the two cues.Conclusion:The conclusion from this paper comes in three separate items. The general conclusion,theoretical implication and managerial implication. The general conclusion states that thefindings prove that LTS and LQS has a significant positive impact on purchase intention.Secondly, the theoretical implication states that LTS has a more significant impact onpurchase intention in an online context and that scarcity does not influence a positivebehavioural outcome such as purchase intention similarly offline versus online.The managerial implications state that LQS and LTS could be used to enhance purchaseintention synonymously with each other.