In the context of fierce market competition, luxury hotels face the strategic challenge of maintaining brand prestige while enhancing consumer appeal. Four experiments investigate the effects of two promotion practices (time scarcity vs. regular) on consumer perceptions and brand relationships, as well as the role of celebrity endorsements and the moderating effect of self-construal. The findings show that time scarcity promotions yield a more positive effect on consumer-brand identification and booking intentions through perceived symbolic value. It further finds two moderators, namely celebrity endorsements and self-construal, and the main effect is strengthened when consumers with an interdependent self-construal encounter time scarcity promotions. The research advances understanding of luxury service marketing by identifying the conditional effects of promotional tactics and deepens the insight into how high-end brands balance promotional efficiency and brand prestige. • This study examines the luxury discount paradox in luxury hospitality. • Scarcity cues can transform from urgency heuristics to symbolic signals. • Celebrity endorsements strengthen the positive effect of time scarcity promotions on brand identification. • Responses to celebrity endorsements by consumers' self-construal.
Yu et al. (Mon,) studied this question.