First come, first served versus the draw: Perceived fairness in the new product purchase competition

Abstract

Although new products are not inherently scarce, consumers often display competitive behavior, eagerly queuing up to be among the first to obtain them. To manage the distribution of such sought-after items, retailers determine which consumers get the opportunity to make a purchase. The question of which selection method ensures fair treatment of individual customers and enhances purchase experiences for a new product remains unresolved. Results of three experiments revealed that those in an ordered selection discipline were likely to be more time-sensitive and perceive it as fairer than those in the random selection discipline when purchasing a new product. The difference in perceived fairness between the ordered selection discipline and the random selection discipline was more substantial, when the new product was highly scarce, due to increased selection uncertainty. However, the reverse effect was found when consumers were not selected to purchase a new product. The ordered selection discipline was perceived as less fair than the random selection discipline. The findings provide valuable insights into how selection disciplines shape consumers' perceptions of fairness during the purchase of a new product.