This can lead to unnecessary buying and hoarding of items that are already in short supply. Researchers have found that when consumers are faced with perceived scarcity, they may become overwhelmed by the fear of needing an item and not having it. Scarcity is also considered by some to encourage hoarding behavior. Scarcity of resources can create frustration due to the inability to obtain the coveted item. Due to the pandemic, people panic bought toilet paper out of fear of limited product supply, creating a shortage. Historically, panic buying was seen during the COVID-19 pandemic in 2020. Īnother example of the effects of scarcity is the phenomenon of panic buying, which drives people to display hoarding behaviors when faced with the possibility of going without a certain product. More than getting a bargain on a great gift, shoppers thrive on the competition itself, which is obtaining the scarce product. This idea is deeply embedded in the intensely popular “ Black Friday” shopping extravaganza that many United States consumers participate in every year on the day after Thanksgiving. There are no toilet rolls on the shelves in March 2020. If someone has already committed themselves to something, then find out they cannot have it, it makes the person want the item more.Īlthough people usually think of scarcity in a physical manner, it is important to note that the 'product' in short supply can also be abstract ideas such as time or energy. The second contributing principle to scarcity is commitment. This is a contributing factor to the effectiveness of scarcity, because if a product is sold out, or inventory is extremely low, humans interpret that to mean the product must be good since everyone else appears to be buying it. There are two social psychology principles that work with scarcity that increase its powerful force. These perceptions of scarcity can lead to irregular consumer behavior, such as systemic errors or cognitive bias. For example diamonds are more valuable than rocks because diamonds are not as abundant. Humans place a higher value on an object that is scarce, and a lower value on those that are in abundance. Scarcity is basically how people handle satisfying themselves regarding unlimited wants and needs with resources that are limited. Scarcity, in the area of social psychology, works much like scarcity in the area of economics.
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