The Double-edged Sword Effect of Resource Scarcity on Consumer Behavior: Research Framework and Prospects

Abstract

Resource scarcity, widespread in the acquisitive modern society, is a subjective feeling of less possession than necessity. Previous studies have suggested that resource scarcity will make individuals focus more on urgent things in the decision-making process, and eventually produce two different outcomes. One is named “tunneling tax”, that is, focusing on urgent things and inhibiting other goals, which eventually leads to adverse consequences. The other is named “focus dividend” that refers to the phenomenon of focusing on and maximizing the use of scarce resources, and ultimately generating favorable results.Will the impact of resource scarcity on consumer behavior also present a double-edged effect? According to the classification of consumption decision-making process model, this paper systematically explicates the double-edged effect of the impact of resource scarcity on consumer behavior. It finds that the double-edged sword effect of resource scarcity on consumer behavior is reflected in the whole process of consumer decision-making. Specifically, before consumption, resource scarcity enables consumers to attain more promotional offers, but it also makes consumers ignore other important information and products. During consumption, resource scarcity causes the high utilization of scarce resources, while it may also lead consumers into a negative cycle of loan. After purchase, resource scarcity increases consumers’ attention on the use value of products, while it may also reduce the utilization of the social value of products.This paper also explores the theories that explain the impact of resource scarcity on consumer behavior, and finds that the attention resource theory, the self-regulation theory and the emotion regulation strategy can explain the double-edged effect of consumer behavior from cognitive, behavioral and emotional levels. By further refining the process of resource scarcity affecting consumer behavior, it is found that resource scarcity can affect consumer behavior through three paths. The first is the “income-increasing” path, where consumers directly obtain scarce resources and easily incur the tunneling tax. The second is the “expenditure-reducing” path, where consumers tend to reduce the consumption of scarce resources, thus using them more efficiently and generating a focus dividend. The third is the “compensatory” path, where consumers tend to pursue other positive feelings. If consumers pursue only happiness, there will be a tunneling tax; if consumers actively pursue other goals than happiness, there will be a focus dividend. The three paths under the guidance of three theoretical foundations can fully explain how resource scarcity affects the double-edged effect of consumer behavior.This paper also sorts out the moderators acting on the three paths from the environmental level or the individual level. Among them, information representation and the type of welfare system at the environmental level and cognitive resources at the individual level will moderate the “income-increasing” path and reduce the generation of tunneling tax. The location of goods will affect the “expenditure-reducing” path, which in turn increases the focus dividend. Resource mutability at the environmental level and the total amount of “slack” at the individual level will moderate the “compensatory” path, directly influencing the choice of consumers on this path.In the end, this paper further provides practical inspiration for consumers, merchants and policy-makers to encourage them to utilize and deal with this effect effectively. Besides, future researches could explore the immediate and long-term effects of different types of resource scarcity on consumer behavior, as well as additional relevant moderators.