According to the point of view of most consumer behavior’ literature, scarcity is an attribute from which a consumer infers other characteristics for instance price as well as uniqueness. Other researchers go further to suggest that scarcity affects the perception of goods of consumers by enhancing attractiveness as well as desirability. Research indicates that when marketing communications, as well as promotions, use scarcity messages, there is always a positive impact on the attitude evaluation toward the object that is scarce. Although issues of scarcity affect the consumers in the world, for the most part, the developed world faces over-abundance; as a result making the scarcity research difficult in western contexts.
Problem Statement
Product scarcity is signaled through constraining the opportunity to own or experience. It can either be induced by the environment or humans. Both ways indicate a loss of freedom; therefore, individuals tend to desire products on which such limitation has been placed to negate this loss. The perceived value, as well as the desirability of objects, is influenced by this loss thus impacting the choice of the consumer. This is evident in the way the fashion retailers such as Zara has taken the fashion industry by storm.
Literature Review
Scarcity dominates the aspect of human behavior. It is comprised of the human-induced as well as the environmentally-induced types (Gupta, 2012, March). There is a loss of freedom in each type, and since the perceived value of products, as well as opportunities, is enhanced its results to the higher desirability of products, increased quantities bought, as well as greater product satisfaction. Scarcity affects the preference of the consumer only if they believe that scarcity is created by the market forces. On the other hand, the effects of scarcity on preference are not found when consumers think that scarcity is created accidentally or by non-market forces, for instance, failed deliveries. In a retail environment, a scarcity that is induced by humans can be generated further because of supply and demand’ forces. When the retailer deliberately controls the supply of a product, a “supply-side scarcity” arises. Whereas, a “demand side scarcity” arises when the supply is not limited, and the scarcity occurs because of other factors for instance high product demand (Swami " Khairnar, 2003).
There are two theories related to scarcity for instance reactance theory as well as the commodity theory. According to the reactance theory, an individual expresses a psychological reactance when experiencing a threat to his freedom. While the commodity theory sees a scarce product as a unique product to possess. Overall, scarcity creates a sense of urgency to buy among consumers especially when there is limited time to buy the product. “Urgency to buy” refers to the consumers’ desire to purchase the product instantly, therefore, limiting the freedom of the consumer to delay buying decisions.
Methodology
Until today, researchers have not come with a way to measure perceived scarcity as well as the urgency to buy therefore an approach of mixed methods for instance qualitative analysis and quantitative analysis are used to understand these constructs better as well as how they influence the buying behavior of the consumer.
Procedure for Qualitative Study
In this study, the phenomenon of perceived scarcity as well as its influence on the buying behavior of consumer was explored from the respective of the retailer. The study uses a script following ethical guidelines to contact the store managers. Additionally, a face-to-face interview with store managers of H"H as well as Buckle was conducted. The store managers have experience of between 2 to 15 years while their age varies from 24 to 40 years.
Procedure for Quantitative Study
To measure the aspect of “urgency to buy” the study incorporated some items that were derived from the conceptual discussion in the literature. A scale is used to measure perceived scarcity, as well as the need for uniqueness. The scale ranges from "agree, neutral, and disagree." This questionnaire was filled by 50 participants from Zara, Buckle, as well as H"M fashion stores. Out of the 50 participants, 30 were female and the ages varied from 16 to 55 years. The age of the male participants ranged from 18 to 50 years.
Data Analysis
To analyze the qualitative inquiry, the method of constant comparison of Glasser and Strauss (1967) as well as Huberman’s method of coding was used. Labels and themes were determined from the data collected (Glasser " Strauss, 1967). On the other hand, a structural equation modeling was used to assess the need for uniqueness as well as perceived scarcity.
References
Glasser, B. G., " Strauss, A. L. (1967). The development of grounded theory. Chicago, IL: Alden.
Gupta, S. (2012, March). The Psychological Effects of Perceived Scarcity in a Retail Setting and its Impact on Consumer Buyer Behavior. In Robert Mittelstaedt Doctoral Symposium Proceedings (p. 1).
Swami, S., " Khairnar, P. J. (2003). Diffusion of products with limited supply and known expiration date. Marketing Letters, 14(1), 33-46.
Appendices
Research Questions for Qualitative Study
1. What is your role as a store manager in this store?
2. How much effort does the staff put to ensure the product is easily located by the customer?
3. How much effort does the staff put into shuffling the products?
4. What influence does proper product allocation have on the consumers’ purchase decision?
5. What influence does product shuffling have on the consumers’ purchase decision?
Measurement Items for Quantitative Analysis
Perceived Scarcity
1. There is a limited number of products regarding size, style, and color in this store.
2. The products of interest were scarce in this store.
3. The styles I was looking for were scarce
4. There was product overabundance (reverse scale).
Urgency to Buy
1. I instantly develop an interest to buy the items of interest.
2. I immediately want to buy the items of interest even if it was not my intention to purchase them.
3. If I don’t buy the product immediately, I will not buy it later.
4. Without considering the consequences, I buy the products of interest.
Need for Uniqueness
1. An important goal when purchasing a product is to communicate my uniqueness
2. I buy particular products to develop my uniqueness
3. In most cases, I do not purchase merchandise that is bought by the general population.
