Why Limited Editions harm the brands: a hype with consequences!

Why Limited Editions harm the brands: a hype with consequences!

Witten, Deutschland - The marketing strategies in the consumer goods industry are subject to constant changes. A particularly striking trend is the hype about Limited Editions, which are used both as a marketing instrument and as a possibility to increase demand. This strategy is often used to give the impression of exclusivity. According to Uni-WH , a quick sale of such a limited edition is, among other things, that it is a particularly desirable product. A current study in which Prof. Dr. Michael Steiner from the University of Witten/Herdecke is involved, however, shows that this can have negative consequences for brand binding in the long term.

customers often find the quick shortage unfair, which leads to disappointment and a loss of trust in the brand. These findings could be important for many companies, since the sale via external retailers further increases the frustration of consumers and suffers transparency. The study emphasizes that it is possible for manufacturers to reduce negative effects through raffles in their own app. Despite the success of the buyers in such raffles, they find the procedures less positive, which underlines the complexity of customer loyalty.

long -term challenges of the limited editions

The market landscape is especially a big challenge for the consumer goods industry, which has to deal with saturated markets and constant competition. A master's thesis by the St. Pölten University of Applied Sciences examines the effects of limited editions on the intentions of consumers and illuminates how artificial shortage is used as a strategy to attract attention. The results show that targeted shortage measures significantly increase the intention to buy, depending on consumer maintenance. The study has divided 211 participants into two groups, which identified significant differences in product perception.

In a competitive environment, it remains important that companies weigh between regular editions and Limited Editions in order to withdraw from the competition, especially in interchangeable categories. It is crucial that the limited products fit the brand and do not damage the brand image. The design of Limited Editions with striking shortage information and unique characteristics plays a crucial role here.

psychological and social influencing factors

Not only the intention to buy, but also the psychological aspects of consumer behavior are influenced by limited editions. Knapped goods always show a special attraction and can have positive effects on buying decisions. Several constructs, including product peculiarity and price willingness, have been identified that are crucial for the perception of Limited Editions. The challenge remains to implement these findings into effective marketing strategies, while at the same time ensuring the satisfaction of customers.

Another example of innovative marketing strategies offers Coca-Cola with its “Share a Coke” campaign. This aimed to establish a stronger connection to consumers and shows how personalization and interactivity can be successfully implemented in advertising. It becomes clear that brands have to find creative ways in saturated markets to stand out and strengthen customer loyalty, especially in an environment in which traditional advertising measures are less effective.

Overall, Limited Editions are a double -edged sword: You can increase the attractiveness of a product at short notice, but in the long term, brands have to keep an eye on the potential negative consequences to secure sustainable growth and a loyal customer base.