Influence of number magnitude in luxury brand names on consumer preference

In this study we built on scarcity theory, to conduct two experiments in which we investigated the influence of arbitrary numbers we inserted into brand names of luxury products. In Study 1 we recruited 68 consumers who were each assigned to one of two groups (small number or big number for brand name), in order to test consumers' preferences for luxury brands with names of different number magnitudes. The results revealed that a product with a small number in the brand name was received more favorably than was a product with a big number in the name. Scarcity mediated the relationship between number magnitude and preference. In Study 2 we tested the moderating role of involvement. Number magnitude of the brand name influenced preference through scarcity when involvement was high but not when it was low. Thus, we found that numbers in the name of a luxury brand arbitrarily impacted consumers' perceptions of scarcity, which influenced their preference in regard to brand. This relationship was moderated by involvement. The results suggest that manufacturers of luxury brands should use a small number in their brand name, and should increase the degree of consumer involvement to elevate consumer preference for the brand.