Translating virtual product scarcity in gaming to real‐world brand value

Abstract

AbstractThis study explores how the scarcity of virtual products in virtual gaming spaces influences brand evaluation in the real world. While previous studies suggest that scarcity in virtual spaces can enhance brand value, the mechanisms and conditions under which this effect occurs (e.g., the characteristics of virtual spaces, consumer traits, and stimulus). Drawing on insights from scarcity research on physical products, we propose that the effects of scarcity may stem from the expectation of impression management. We developed a model that incorporates insights from physical product scarcity research with the unique aspects of virtual spaces and consumer characteristics. Through four studies, we discovered that the effect of supply scarcity in enhancing brand evaluation is pronounced when the space is online and when consumers have a high level of social presence. Furthermore, in cases where social presence is not high, encounters with others wearing scarce products were found to enhance the scarcity effect. Companies can enhance brand evaluation by strategically using virtual product scarcity in online gaming, particularly when targeting consumers with high social presence or creating opportunities for players to interact with others wearing scarce items.