From rarity to desire: How introducing new limited editions, the immediacy of sellouts, and distribution strategies drive brand repurchase intentions

Abstract

Limited Editions (LEs) are common in premium markets. Before launching a new LE, managers must decide how many units to produce and, thereby, influence how quickly it sells out. Our research examines (a) how sellout immediacy, (b) a hedonic vs. utilitarian nature of LEs, and (c) distribution strategies (the manufacturer’s app and raffle vs. retailers) influence perceived uniqueness, hedonic, and utilitarian brand value and, finally, brand repurchase intentions. For hedonic LEs, immediate sellouts harm repurchase intentions, whereas non-immediate sellouts do not. Switching to sales via an app and a raffle reduces these negative effects of immediate sellouts. However, for utilitarian LEs, negative outcomes dominate regardless of the sellout immediacy or distribution. These findings highlight that sellouts of utilitarian LEs and immediate sellouts of hedonic LEs are a threat to brand value and repurchase intentions.