The influence of scarcity on brand equity: An investigation on co-branded product
Authors:Pei-Fang Li; Nadezda Sorokina; Ho-Ya Hsu; Yu-Shan Chen
Journal: Corporate Management Review. Dec. 2025, 45(2): 101-133
Keywords: Scarcity, co-branding, consumer-based brand equity, perceived quality, perceived value, perceived uniqueness
Abstract:
The purpose of this study is to examine the influence of scarcity on brand equity, particularly through the lens of limited-quantity co-branded products. This research aims to integrate two distinct models—scarcity and consumer-based brand equity (CBBE) facets—to investigate the effects of co-branding in the context of Taiwan. The study collects data through 400 valid questionnaires from residents in Taiwan, utilizing structural equation modeling (SEM) to analyze the data. The research focuses on assessing how a limited-quantity co-branding strategy influences various components of brand equity, such as perceived quality, perceived value, and perceived uniqueness. The empirical findings indicate that a limited-quantity co-branding strategy has a positive effect on brand equity. Specifically, perceived scarcity positively influences the CBBE facets—perceived quality, perceived value, and perceived uniqueness. Additionally, the study finds that assumed expensiveness positively impacts perceived value and perceived uniqueness, although it does not significantly affect perceived quality. Furthermore, the mediation effect of willingness to pay a price premium between perceived quality, perceived uniqueness, and purchase intention is evident. The findings offer valuable insights for marketers and brand managers, particularly in the use of scarcity as a strategy to enhance brand equity. The positive impact of limited-quantity co-branding on perceived quality, value, and uniqueness suggests that companies can effectively leverage scarcity to increase consumer willingness to pay a price premium and to drive purchase intentions. This study contributes to the literature by integrating the scarcity model with CBBE facets to explore the effects of co-branding in Taiwan. The research offers a novel approach by empirically testing the relationship between scarcity, brand equity, and consumer behavior, providing both theoretical and practical implications for branding strategies in the context of limited-quantity products.