Strings attached : product restriction, brand perception, and downstream consequences on consumer behavior

Abstract

Companies frequently communicate information to consumers about product restrictions in order to help them to store, use, and/or dispose of those products properly. However, little discussion has been devoted to how consumers respond to product restrictions. In the present research, I offer a clear definition of product restrictions and reveal how and why product restrictions shape consumers’ brand perceptions and downstream purchase intention and behavior, showing that product restrictions bring not only usage inconvenience, but also heightened perception of brand status. Consequently, although in general product restrictions lead to negative purchase intentions, they can encourage purchase when the brand status is desirable in the consumption context. Specifically, product restrictions enhance consumers’ purchase intention and behavior when consumers have a shopping goal for high-status products and when the brand is positioned as a high-status one. These findings shed light on the impact of product restrictions, contribute to the literature on brand status and brand power, and provide significant managerial implications.