Scarcity and preference: An experiment on unavailability and product evaluation

Abstract

Scarcity and preferenceVerhallen, T.M.M.; Robben, H. ABSTRACTThe experiment reported examined the effects of four conditions of product availability on consumers' preferences for recipe books, and the corresponding uniqueness judgments and cost evaluations for the same products. These conditions were unlimited availability, limited availability due to popularity, limited availability due to limited supply and accidental unavailability.The results varied according to whether other people's choices depended on the participants' revealed preferences in the investigation. Without this social constraint, participants preferred a book of limited availability due to market conditions to books that were accidently unavailable or of unlimited availability. This effect was most pronounced for books that were of limited availability due to both popularity and limited supply. When a social constraint was present, no significant differences in preferences were observed.Books of limited availability due to market circumstances were perceived as more costly and more unique than books that were accidentally unavailable or abundantly available. Emphasizing the presence of others led to a decrease in the uniqueness judgment for a good of limited availability, especially when the limited availability was due to popularity. Books of limited availability due to both popularity and limited supply were perceived as more costly regardless of the social situation.Availability of goods influences consumers' preferences, and this effect is mediated through perceptions of uniqueness and cost evaluations.

Determinants of Consumers' Perceived Trust in IT-Ecosystems

“…Furthermore, this desire also increases when the product is also perceived as expensive [44], [106]. Therefore, the more unique a product or service is perceived to be and the more expensive it is compared to usual standards, the more valuable it becomes [106]. In addition, the functional value of uniqueness also strengthens the individual's need to be unique and set himself apart from the social environment within which he or she is embedded [101].…”

“…Furthermore, this desire also increases when the product is also perceived as expensive [44], [106]. Therefore, the more unique a product or service is perceived to be and the more expensive it is compared to usual standards, the more valuable it becomes [106].…”

“…Need for uniqueness: Uniqueness is based on the assumption, supported by research, that the perceived exclusivity and rarity of a product or service enhances the user's desire or preference for a certain brand or product [71], [90], [106]. Furthermore, this desire also increases when the product is also perceived as expensive [44], [106].…”

Adaptive persuasive messaging to increase service retention: using persuasion profiles to increase the effectiveness of email reminders

“…Frequently, the use of these cognitively ''cheap'' rules leads to a fast and relatively accurate appraisal of the merits of the appeal: If (e.g.) a product is ''almost out of stock,'' a large number of prior customers may have bought the product based on product merits and opportunities to buy in the future may be rare or high cost [40]. Thus, without engaging in full and cognitively costly processing, a user can make a choice based on an accurate peripheral cue [12].…”

Quasi-Free Goods and Social Norms: The Effects of Quantity Restrictions and Scrutiny

“…The customer will often interpret the quantity limitation as a signal for a top-quality or high-value product (Lynn, 1992), or as a signal for an attractive deal (Inman, Peter and Raghubir, 1997), which results in increased consumption. Previous empirical studies found that while such limitations lead to more frequent or greater volume purchases (Inman, Peter andRaghubir, 1997, andVerhallen andRobben, 1994), choices are affected by the extent of the limitation. Wansink, Kent and Hoch (1998) demonstrated that customer motivation for increased consumption is dependent on limitation size -low limitation ("up to 4 products") is a strong indication for customers that the deal is worthwhile, while high limitation ("up to 12 products") is a weaker signal, but it performs as an anchor that can significantly divert customer decisions, as it suggests to customers what may be viewed as reasonable consumption.…”