Unravelling Advertising Appeals

Many businesses have strategically incorporated scarcity and FOMO (Fear of Missing Out) appeals in their marketing efforts to influence consumer behaviour and affect purchase intentions. However, existing research remains unclear about the relationship between these appeals and consumers’ purchase intentions, as well as the mediating role of perceived FOMO and the moderating role of conceptual and evaluative persuasion knowledge in this respect. Additionally, prior studies have predominantly focused on traditional and digital advertising broadly, neglecting the specific context of social media platforms, which may provide a distinct opportunity for companies to employ scarcity and FOMO appeals effectively. Therefore, this thesis poses the following research question: To what extent does the use of scarcity and FOMO appeals in social media advertising influence consumers’ purchase intentions? To answer this question, an online experiment paired with a survey was conducted, gathering data from daily social media users (N= 120). The between-subjects experimental design included three levels: a social media advertisement without an appeal, one including a FOMO appeal, and one including a scarcity appeal. Data analysis was conducted with Hayes’ PROCESS Macro. The results reveal that contrary to expectations, there was no relationship between scarcity appeals in social media advertising and purchase intention. In contrast, the use of FOMO appeals in social media advertising did increase consumers’ purchase intention. Moreover, perceived FOMO did not mediate the relationship between scarcity appeal and purchase intention; however, it fully mediated the relationship between FOMO appeal and purchase intention. This finding suggests that FOMO appeals are more effective in eliciting an emotional response, such as perceived FOMO, than scarcity appeals. Furthermore, contrary to previous theories and findings, conceptual and evaluative persuasion knowledge did not moderate the relationships between scarcity and FOMO appeals, and purchase intention within the realm of social media advertising. Collectively, these findings provide marketing practitioners, policymakers, and consumers with valuable insights into the underlying mechanisms of these appeals and their effect on consumer behaviour.