Impact of scarcity on consumer behavior

Abstract

This article analyzes the impact of scarcity on consumer behavior and on perception of scarce goods consumer qualities. The author examines and subjects to the critical analysis the impact of scarcity on consumer behavior within economic theory, the theory of reactance and commodity theory. The differences in explaining the impact of scarcity on consumer behavior in economic and psychological sciences is highlighted. The current researcher experimentally proves the impact of the scarcity as an isolated factor on consumer behavior and the impact of scarcity on consumer perception of product quality. According to the reactance theory, an individual perceives scarcity as the restriction of his freedom that causes resistance in response to a possible restriction of freedom of actions. This reinforces the desire to have such a scarce product. To confirm the psychological impact of scarcity on a domestic consumer the author designs and conducts the experiment that confirms the following hypotheses: scarcity affects consumer behavior and stimulates consumers to purchase scarce commodities; scarcity has impact on the perception of scarce product consumer qualities. Such consumer behavior relatively to scarce goods can be used by marketers to promote products on the market.

Keywords

• demand for goods
• scarcity of goods
• economic theory
• reactance theory
• commodity theory
• Rational choice theory
• rational man
• economics
• psychological science
• price
• quality
• manipulation
• freedom