Perception Of Scarcity Research Articles

Effects of Perceived Scarcity on Financial Decision Making

How are financial decisions compromised as scarcity increases? Extant research focuses mostly on the consequences of financial scarcity; moreover, this factor is treated simply as a lack of liquidity. Using a mixed-method approach, the authors investigate the dimensions of perceived scarcity and the ways they work in tandem to negatively influence perceptions and decisions. Internal influences (including perceived consequences) and external influences (including decreased lending options) lead to results described in this article as the “triple scarcity effect.” Experimental results show how perceived financial scarcity undermines loan decisions, particularly for consumers at the greatest financial risk. Next, qualitative data collected from the Consumer Financial Protection Bureau are used for a between-method triangulation of the earlier findings. Understanding the multidimensionality of perceived financial scarcity is important for designing preventive measures that improve decisions (e.g., not reborrowing) and decision making (e.g., accurately calculating cost). Results from two interventions demonstrate how these improvements are made when consumers' perceptions of scarcity are reduced. Finally, the authors discuss the welfare impact for lenders, marketers, and policy makers, and they offer an agenda for future research.

Subjective socioeconomic status modulates perceptual discrimination between beverages with different energy densities

Prior research has revealed socioeconomic disparities in obesity and diabetes across developed nations, such that the burden of these disorders is disproportionately shouldered by socioeconomically disadvantaged populations. More recent research has demonstrated that independent of actual socioeconomic status (SES), the mere perception of scarcity, deprivation, or inferiority of socioeconomic resources is sufficient to stimulate increased preference for energy-dense foods and meals. This heightened motivation towards energy-dense foods when experiencing low subjective SES (SSES) may be accompanied by changes in perceptual discrimination between foods that differ in energy density, which may in turn shape later preference and selection for energy-dense foods. Conversely, the experience of high SSES and relative socioeconomic security may lead to de-prioritization of energy density during food selection, leading to suppressed detection of energy density. We tested these predictions by randomly assigning participants (n = 93) to experimental inductions of low, high, or neutral (control) SSES. Next, participants tasted and rated four different versions of soy milk that varied on energy density (low or high) and texture (thin or thick). While participants in control and low SSES conditions could perceptually discriminate between low and high energy versions of the beverages, those in the high SSES condition exhibited no differences in assessments of energy density of the beverages. Consistent with the notion that perceived deprivation (or satisfaction) of important non-food socioeconomic resources may stimulate/suppress appetite, our findings indicate that SSES may modulate perceptual discrimination of energy in foods, which may contribute to socioeconomic differences in food preferences and obesity risk independent of actual financial and economic constraints.

How can local representations of changes of the availability in natural resources assist in targeting conservation?

The use and appropriation of natural resources by human groups may be strongly related to the perception that these groups have of the abundance or scarcity of these resources. Researches on environmental representation can be useful to understand the criteria involved in the selection and use of natural resources, to verify if people realize changes in the availability of these resources and the possible causes of these changes and to elaborate conservation strategies, if necessary. However, if people are not realizing these changes, of if they do not perceive themselves as a cause of such scarcity, the developing of conservation strategies will be very difficult to implement. We investigated the drivers of sustainable harvest of Syagrus coronata (Mart.) Becc. (ouricuri palm) leaves by the Fulni-ô indigenous people in northeastern Brazil and accessed the representation of changes in the availability of the populations of this species over time. We obtained information about events that, from the point of view of the palm harvesters, pose threats to S. coronata populations. More experienced local harvesters tend to harvest leaves in a more sustainable manner than did young and inexperienced harvesters. The Fulni-ô reported a decline in S. coronata populations. However, they primarily associate such decline to the farming practices of non-indigenous people that lease lands in the area. Although the Fulni-ô people perceived a shortage of such resource, our findings indicate that the implementation of conservation strategies for the ouricuri palm may not be so easy to implement, once it affects one of their main income sources (land lease), which is recognize as the major threat for the species by harvesters. Ours results showed that the relationship between perception of scarcity and ease of implementation of conservation actions should be contextualized.

Race and recession: Effects of economic scarcity on racial discrimination.

When the economy declines, existing racial disparities typically expand, suggesting that economic scarcity may promote racial discrimination. To understand this pattern, we examined the effect of perceived scarcity on resource allocations to Black and White American recipients, and tested whether this effect depends on a decision maker's motivation to respond without prejudice. We proposed that scarcity would lead to increased discrimination among those with relatively low internal motivation but not those high in internal motivation. Indeed, we found that when resources were framed as scarce (vs. abundant or a control condition), low-motivation participants allocated less to Black than White recipients, whereas high-motivation participants allocated more to Black than White recipients (Studies 1 and 2). This pattern was strongest when decisions could be made deliberatively (Study 3), and anti-Black allocation bias emerged even in a non-zero-sum context (Studies 4 and 5), suggesting a strategic bias directed against Black recipients rather than in favor of White recipients. These findings indicate that the psychological perception of scarcity can produce racial bias in the distribution of economic resources, depending on the motivations of the decision maker-an effect that may contribute to the increase in racial disparities observed during economic stress. (PsycINFO Database Record

Anticipation of Future Variety Reduces Satiation from Current Experiences

Satiation frequently occurs from repeated consumption of the same items over time. However, results from five experiments show that when people anticipate consuming something different in the future, they satiate at a slower rate in the present. The authors find the effect in both food and nonfood consumption settings using different approaches to measure satiation. This effect is cognitive; specifically, anticipating variety in future consumption generates positive thoughts about that future experience. The authors find two boundary conditions: the future consumption outcome must be (1) in a related product category and (2) at least as attractive as the present consumption outcome. The authors rule out potential alternative explanations such as mere exposure to variety, the possibility that the future experience is more attractive (rather than just different) than the current one, and perceptions of scarcity associated with the item consumed in the present.

Escape from infinite freedom: Effects of constraining user freedom on the prevention of dropout in an online learning context

Online learning involving Massive Online Open Courses (MOOC) is often used to avoid the physical limitations of offline learning. In addition, educational equality can be achieved by redistributing sunk costs in the online context. However, the dropout rate represents a serious and avoidable waste of economic resources. Numerous researchers have conducted studies on the subject, the large majority of whom outlined possible causes of the dropout phenomenon rather than offering solutions to reduce the dropout problem in e-learning. To remedy this, we propose practical system features to counteract the dropout rate in online learning. Through original use of psychological reactance theory (Brehm, 1966) as our main theoretical framework, we make two suggestions: restricting accessibility and limiting repeatability of online courses. These two measures create a sense of scarcity and lack of control, which may help to reduce dropout rates. In an experiment using our e-learning prototype, we analyzed data collected through a survey/questionnaire and interviews with subjects after the experiment. The results indicate that the perception of scarcity and lack of control in the online learning context may enhance e-learners’ concentration and increase their intention to continue and engage more deeply in online learning.

소셜커머스에서 부정적 리뷰 유형, 브랜드 명성, 기회희소성지각이 패션제품 선호도에 미치는 영향

This study aims to analyze the impact of negative review type, brand reputation and opportunity scarcity perception, on preferences of fashion products in social commerce. For the above evaluation, we used the 2 (negative review type: objective/subjective) <TEX>${</TEX><TEX>\times}2$</TEX> (brand reputation: high/low) <TEX>${\times}2$</TEX> (opportunity scarcity perception: high/low) model, designed with three mixed elements. We enrolled 260 women in their 20s and 30s, who live in Seoul and have used social commerce; a final total of 207 subjects were considered for analysis. The data were analyzed using the SPSS 18 program and reliability test, t-test and three-way ANOVA were performed. Following observations were made: First, preferences were higher when the subjects read objective negative reviews than subjective negative reviews, and when a fashion product was from a brand of high reputation than a brand of low reputation. Second, the interaction effect between negative review type and brand reputation was greater among the subjects whose opportunity scarcity perception is high, than those having low opportunity scarcity perception. Thus, we conclude that the social commerce should encourage consumers to write more objective reviews, and fashion brands should manage their reputations well. Also, social commerce can use scarcity messages aggressively to increase preferences of global fashion luxury goods, which is actively marketed in social commerce since 2015.

An Examination of Response of Consumers with Different Levels of Uniqueness to Limited Quantity Offers

Executive Summary Marketers try to influence consumers through promotional offers by restricting availability of products to a limited number of customers, a limited time period, or a specific segment, thereby creating a perception of scarcity. Such promotional appeal of making a product or offer scarce is called as scarcity appeal. Literature suggests that people with high need for uniqueness (NFU) prefer scarce products, or at least products which are depleting fast. However, the relationship between scarcity of offers and the NFU has not been much explored. The objective of this research is to understand how consumers with different levels of uniqueness respond to the scarcity appeal offer, especially with discount. Hypotheses relate to variability of purchase intent and attitude towards the product due to scarcity versus no-scarcity sales promotion appeals and by consumers with high and low needs for uniqueness. Proposed hypotheses were tested using 2 × 2 between-subjects factorial design. Quantity scarcity and no-scarcity appeals were manipulated using pre-tested and validated scenarios. Product used in the scenarios (laptop) was identified through an iterative process of seeking inputs from respondents with demographic profile similar to those in the final sample. Consumers’ need for uniqueness (CNFU) purchase intention, and attitude towards product were measured using scales that were pre-tested and validated using accepted protocols. On testing the formulated hypotheses using experimental design, it was found that: Consumers respond more favourably to quantity scarcity appeal offer when compared with no-scarcity appeal offer. Consumers with higher NFU indicate higher purchase intention in a no-scarcity appeal situation when compared with those with low NFU. There is no statistically significant difference in purchase intention of consumers with high and low needs for uniqueness in a situation of scarcity appeal messaging.

The role of proximity in problem identification: risk of water scarcity in Texas

This project seeks to determine whether proximity to major water sources (e.g. rivers or lakes) is associated with the public's perception of water scarcity. From a theoretical perspective, this project will aid our collective understanding of problem identification. From a practical perspective, this relationship could help inform decision makers about where support or resistance to a water policy may be concentrated and allow more targeted efforts to help inform citizens about short- and long-term water policy needs. Knowing the influence of local conditions on public support for policy action is particularly important as water policies are primarily the domain of local and state governments. We utilize Geographical Information Systems to quantify the distances between survey respondents and various water sources to attempt to determine the effect individuals' proximity to water sources has on their opinions about water scarcity. The analyses reveal that proximity is a predictor of water scarcity perceptions, and the implications of these findings are discussed.

Causes and cures VIII: Environmental violence

Abstract The past two years have been a landmark moment for violence prevention, with the publication of The Global Status Report on Violence Prevention 2014; a historic resolution on violence by the 67th World Health Assembly; and the release of multiple documents on violence by international and United Nations entities, with a corresponding building of momentum in scholarship. Most notably, in September 2015, the United Nations General Assembly adopted the 2030 Agenda for Sustainable Development, addressing the need for violence prevention at an unprecedented scale. In this context, more than ever, violence studies have become a field of its own right. Still, a systematic approach of the topic has been lacking, and no textbook yet synthesizes the knowledge of multiple disciplines toward a cogent understanding. This article is the eighth of a series of fifteen articles that will cover, as an example, an outline of the Global Health Studies course entitled, “Violence: Causes and Cures,” reviewing the major bio-psycho-social and structural-environmental perspectives on violence. Environmental violence, as defined here, includes: (a) the violence between people(s) over natural resources; (b) environmental policies that can be violent against people; (c) the secondary violence from the natural world as a result of human degradation of the earth; and (d) direct damage to the environment by humans that threatens their own survival. We discuss the link between perception of scarcity, access to resources, the political economy, and the urgent problem of environmental violence.

Did globalization flatten the Phillips curve? U.S. consumer price inflation at the sectoral level

ABSTRACTIt is well-known that the slope of the U.S. Phillips curve has flattened in recent decades. In this article we examine the Phillips curve at the sectoral level to better understand why the slope has flattened. We decompose the core personal consumption expenditures (PCE) deflator into its sectoral parts and find, using a standard new Keynesian Phillips curve econometric specification, that the goods and services sectors contributed unequally to the change in slope. Our analysis is novel in its consideration of PCE inflation dynamics at a microsectoral level within the goods and services categories. The hypothesis that we think accounts for our findings is that globalization and the shift in U.S. output away from manufacturing production toward services reduced the impact of U.S. labor market conditions on the determination of goods prices and likely created a glut of workers seeking employment in the low-wage domestic service sector. The latter implies that workers in the service sector have a de minimis ability to bargain for higher wages, which ultimately manifests itself as a flat Phillips curve slope in the aggregate data. Our results suggest that the full-employment level of unemployment in the U.S. labor market is likely much lower than commonly estimated. Consequently, we argue that aggregate-demand-management policy in the postglobalization era has been persistently biased by an artificial perception of scarcity in the labor market. This bias has restrained wage growth for those working in the domestic service sector, ultimately resulting in widening earnings inequality.

The scarcity heuristic impacts reward processing within the medial-frontal cortex.

Objects that are rare are often perceived to be inherently more valuable than objects that are abundant - a bias brought about in part by the scarcity heuristic. In the present study, we sought to test whether perception of rarity impacted reward evaluation within the human medial-frontal cortex. Here, participants played a gambling game in which they flipped rare and abundant 'cards' on a computer screen to win financial rewards while electroencephalographic data were recorded. Unbeknownst to participants, reward outcome and frequency was random and equivalent for both rare and abundant cards; thus, only a perception of scarcity was true. Analysis of the electroencephalographic data indicated that the P300 component of the event-related brain potential differed in amplitude for wins and losses following the selection of rare cards, but not following the selection of abundant cards. Importantly, then, we found that the perception of card rarity impacted reward processing even though reward feedback was independent of and subsequent to card selection. Our data indicate a top-down influence of the scarcity heuristic on reward evaluation, and specifically the processing of reward magnitude, within the human medial-frontal cortex.

Stand-Alone Sale of a Free Gift: Is it Effective to Accentuate Promotion Value?

Offering a free gift when a purchase is made is one of the most pervasive marketing practices. We investigated whether making the product offered as a free gift also available for sale by itself (i.e., a stand-alone sale of the gift product) accentuated the customer's perception of the value of the promotion. Previous research on value anchoring and adjustment predicted that a stand-alone sale of a gift would increase the promotion value, whereas the opposite was predicted in the scarcity perception literature. We conducted 3 empirical studies with 330 undergraduate students in Korea, and the results supported the scarcity hypothesis: The availability of a stand-alone sale decreased the perceived scarcity of a free gift which, in turn, reduced the value of the promotional offer and discouraged our participants from joining the promotion program. Our findings suggest that the effectiveness of a free gift promotion is enhanced when the gift is not available as a stand-alone product.

Scarcity Polarizes Preferences: The Impact on Choice among Multiple Items in a Product Class

This research examines how the salience of scarcity influences choices of individual items from a product class. The authors propose that overall perception of scarcity versus overall perception of abundance increases choice share of the most-preferred item from a product class. They argue that this phenomenon occurs because scarcity induces arousal and the heightened arousal polarizes the evaluations of individual items contained in the choice set. The results from five experiments show that scarcity versus abundance broadens the discrepancy between the liking of the favorite and nonfavorite items and leads to a greater choice share of the favorite item. The findings provide support for the arousal-based explanation, showing that the effect of scarcity salience on choices is mediated by consumers’ reported arousal level and moderated by an experimentally induced arousal state.

The leadership crisis of medical profession in India: ongoing impact on the health system.

By 2030 India will have one million additional MBBS doctors; currently being produced @50,000 per year. Contrary to perception of scarcity of medical doctors, a large section of newly qualified physicians are spending considerable years in dysfunctional status due to mismanagement in human resource in health in India. There are very few employment opportunities for qualified doctors in public sector; at the same time the average salary of MBBS doctors in urban private hospitals is very low. Paradoxically, in a country of 1.3 billion populations there is no actual demand for medical professionals. While the popular perception is that young doctors are not willing for community service, a reality check is required on the count of intent and capacity of public sector as well as industry towards engagement of medical doctors in the process of service delivery. The visible leaders of medical profession are unable to reflect the ground reality. There is a leadership crisis among medical doctors in India.

The role of physical distribution services as determinants of product returns in Internet retailing

Pressure continues to build on Internet retailers to squeeze out inefficiencies from their day-to-day operations. One major source of such inefficiencies is product returns. Indeed, product returns in Internet retailing have been shown to be, on average, as high as 22% of sales. Yet, most retailers accept them as a necessary cost of doing business. This is not surprising since many retailers do not have a clear understanding of the causes of product returns. While it is known that return policies of retailers, along with product attributes, are two important factors related to product return incidents, little is known about which aspects of the online retail transaction make such a purchase more return-prone. In the current study, we seek to address this issue. We use a large data set of customer purchases and returns to identify how process attributes in physical distribution service (PDS) influence product returns. The first attribute involves perceptions of scarcity conditions in inventory availability among consumers when retailers reveal to consumers information on inventory levels for the products that they intend to buy. Our results show that orders in which items are sold when these conditions are revealed to shoppers have a higher likelihood of being returned than orders in which these conditions are not revealed. While prior research has argued that inventory scarcity perceptions have an effect on purchases, our findings suggest that they are also related to the likelihood of these purchases being returned. The second attribute involves the reliability in the delivery of orders to consumers. We find that the likelihood of orders being returned depends on the consistency between retailer promises of timeliness in the delivery of orders and the actual delivery performance of the orders. Moreover, we find that the effect that consistency in the delivery has in the likelihood of returns, is stronger for orders that involve promises for expedited delivery than for orders with less expeditious promises. That is, although the occurrence of returns depends on the delays in the delivery of orders to consumers relative to the initial promises made by the retailers, this effect is more notable for orders that involve promises of fast delivery.

R-E-S-P-E-C-T—What it Means to Patients

R-E-S-P-E-C-T—What it Means to Patients

Analysis of Time Pressure and Value Perception: An Exploratory Study of Consumer Travel Fair

ABSTRACT The consumer travel fair is a well-known vacation marketing event in Singapore. Travel product/package promotions at the Singapore travel fair are only available for 3 days. The purpose of this study was to investigate the relationship between time pressure and consumer value of travel fair products through their perceptions of scarcity, price, and quality. These constructs were examined using two types of mediation models. A random sample survey of 251 travel fair visitors were collected to verify the conceptual model proposed to integrate these constructs. The study found the mediated relationship between time pressure and consumer value was significant. Additionally, the signs for the total indirect effects were consistent with the proposed mediation models. The results are important from managerial and personal selling perspectives.

Scarcity

Clinicians' perceptions of scarcity influence rationing of critical care resources, which may lead to serious adverse outcomes for patients who are denied access. We sought to better understand the phenomenon of scarcity in the critical care setting. Qualitative research methods. We used purposeful sampling to recruit ICU clinicians who were frequently involved in decisions to allocate ICU resources. Thematic analysis was performed to identify concepts related to the phenomenon of scarcity. An ICU of a university-affiliated hospital in Toronto, Canada, between October and December 2007. We conducted 22 interviews with 12 ICU physicians, 4 ICU fellows, 2 ICU nursing team leaders, and 4 ICU resource nurses. The perception of scarcity arose from a complex interaction of factors within the institution including: 1) practices of non-ICU physicians (e.g., failure to specify end-of-life treatment plans or to secure an ICU bed prior to elective high-risk surgery), 2) family demands for life support and clinicians' perception of a lack of legal support if they opposed these, and 3) inability to transfer patients to non-ICU care settings in a timely manner. Implications of scarcity included: 1) diversions of critically ill patients, 2) premature patient transfers, 3) temporary delivery of critical care in non-ICU locations (e.g., emergency department, postanesthesia care unit), and 4) interprofessional conflicts. ICU clinicians' perceptions of scarcity may lead to rationing of critical care resources. We found that nonmedical factors strongly influenced prioritization activity, both for admission and discharge. Although scarcity of ICU beds might be mitigated by process improvements such as patient flow or proactive communication, our findings highlight the importance of a fair process for inevitable limit setting at the bedside.

Water Scarcity: Moving Beyond Indexes to Innovative Institutions

Water scarcity is a media darling often times described as a trigger of conflict in arid regions, a by-product of human influences ranging from desertification to climate change, or a combination of natural- and human-induced changes in the water cycle. A multitude of indexes have been developed over the past 20 years to define water scarcity to map the "problem" and guide international donor investment. Few indexes include groundwater within the metrics of "scarcity." Institutional communication contributes to the recognition of local or regional water scarcity. However, evaluations that neglect groundwater resources may incorrectly define conditions as scarce. In cases where there is a perception of scarcity, the incorporation of groundwater and related storage in aquifers, political willpower, new policy tools, and niche diplomacy often results in a revised status, either reducing or even eliminating the moniker locally. Imaginative conceptualization and innovative uses of aquifers are increasingly used to overcome water scarcity.