The effects of scarcity on consumer decision journeys

Hamilton, Rebecca; Thompson, Debora V.; Bone, Sterling A.; Chaplin, Lan Nguyen; Griskevicius, Vladas; Goldsmith, Kelly; Hill, Ronald Paul; John, Deborah Roedder; Mittal, Chiraag; O’Guinn, Thomas C.; Piff, Paul K.; Roux, C.; Shah, Anuj; Zhu, Meng

doi:10.1007/s11747-018-0604-7

Cited by 229 publications

(283 citation statements)

References 104 publications

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“…Another acquisition and retention effect may come from exclusive content pieces (Hamilton et al 2019) that are available only through one platform and therefore may bring new customers to the platform or lock in the existing customer base. Amazon and Netflix Originals are prominent examples of combining exclusive distribution with in-house productions that are perceived as scarce, exclusive, and high quality and thus have strong acquisition and retention potential.…”

Section: Life Cycle and Exclusivenessmentioning

confidence: 99%

Content valuation strategies for digital subscription platforms

Seifert¹,

Kandziora²

2020

J Cult Econ

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For digital video subscription platforms, creating and managing content portfolios are critical to acquire new customers, retain existing customers, leverage cross-sales, and generate advertising revenues. We treat content portfolios as a form of pure bundling which may vary in composition and attractiveness over time. Therefore, evaluating the value contribution of each content piece is essential to manage a platform’s portfolio efficiently and to understand how a specific content piece contributes to the bundle’s attractiveness. In this article, we develop an ROI content valuation framework for a digital film subscription platform. This framework describes how a single piece of content diffuses through consumers’ journeys and influences subscription fees through acquisition and retention as well as revenues from cross-sales and advertising. This conceptual approach allows us to address the heterogeneity across content and platform contingencies such as exclusive availability and platform specifics, and link them to revenue streams. Building on this framework, we offer avenues for future research and provide potential lead performance indicators together with their operationalization, enabling all parties involved in the production, marketing, distribution, and sales of content to determine the platform-specific value of a content piece.

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Section: Life Cycle and Exclusivenessmentioning

confidence: 99%

Content valuation strategies for digital subscription platforms

Seifert¹,

Kandziora²

2020

J Cult Econ

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“…The present research contributes to the recent theoretical developments on how choice restrictions impact judgment and decision making (Botti et al 2008;Cannon, Goldsmith, and Roux forthcoming;Hamilton et al 2018;Johar, Meng, and Wilcox 2018;Kristofferson et al 2016;Mehta and Zhu 2016;Roux, Goldsmith, and Bonezzi 2015;Zhu and Ratner 2015). While prior research on commodity theory has made considerable progress in understanding how scarcity of an option enhances its perceived value and demand (Brehm 1966;Brock 1968;Brock and Brannon 1992;Worchel et al 1975), our research documents a novel restriction effect that holds above and beyond the extant scarcity effects by showing that people still pursue a restricted option even when it is unequivocally dominated by a nonrestricted alternative.…”

Section: Theoretical and Practical Implicationsmentioning

confidence: 77%

The Mere Urgency Effect

Zhu

Yang²,

Hsee

2018

Journal of Consumer Research

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In everyday life, people are often faced with choices between tasks of varying levels of urgency and importance. How do people choose? Normatively speaking, people may choose to perform urgent tasks with short completion windows, instead of important tasks with larger outcomes, because important tasks are more difficult and further away from goal completion, urgent tasks involve more immediate and certain payoffs, or people want to finish the urgent tasks first and then work on important tasks later. The current research identifies a mere urgency effect, a tendency to pursue urgency over importance even when these normative reasons are controlled for. Specifically, results from five experiments demonstrate that people are more likely to perform unimportant tasks (i.e., tasks with objectively lower payoffs) over important tasks (i.e., tasks with objectively better payoffs), when the unimportant tasks are characterized merely by spurious urgency (e.g., an illusion of expiration). The mere urgency effect documented in this research violates the basic normative principle of dominance-choosing objectively worse options over objectively better options. People behave as if pursuing an urgent task has its own appeal, independent of its objective consequence.

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“…Finally, our research focused on understanding the antecedents that elicit a general feeling of resource deprivation and gives rise to motivated perception. However, it is not well understood whether specific facets of resource deprivation (e.g., money vs. time) differentially affect consumer perceptions (Hamilton et al., in press). Future research may more directly investigate different facets of resource deprivation on motivated perception.…”

Section: Discussionmentioning

confidence: 99%

“…In a recent review of the scarcity literature, Hamilton et al. (in press) distinguish between product scarcity and resource deprivation to advance our understanding of how these factors influence consumer behavior. One of their primary calls for future research is in looking at the possible interaction between scarce products and resource deprivation to help better understand their relationship.…”

mentioning

confidence: 99%

Scarce Foods are Perceived as Having More Calories

Salerno

Sevilla²

2019

J Consum Psychol

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People vary dramatically in their calorie estimates of food depending on the information available to them. Prior research has focused on information that is normatively relevant to the number of calories a food contains (e.g., fat content, serving size). The current research examines whether information that is normatively irrelevant to the number of calories a food contains-such as its availability-might also shape people's calorie estimates. Three studies found that a food perceived as limited in availability leads people to estimate the food to contain more calories. Serial mediation analyses revealed that this effect occurs because scarce food is seen as more valuable and expensive, which subsequently induces feelings of resource deprivation. This sense of resource deprivation, in turn, leads to motivated perception, whereby higher calorie estimates are the result of people wanting to acquire more resources. The findings provide insight into the psychology of scarcity and underscore the importance of understanding how contextual factors shape people's calorie estimates and the psychological mechanisms that drive them.

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The effects of scarcity on consumer decision journeys

Cited by 229 publications

References 104 publications

Content valuation strategies for digital subscription platforms

Content valuation strategies for digital subscription platforms

The Mere Urgency Effect

Scarce Foods are Perceived as Having More Calories

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