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The effects of perceived scarcity on consumers’ processing of price information

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Abstract

This research examines how perceived scarcity influences consumers’ processing of price information. To explain the effects of scarcity, a conceptual framework which incorporates both the motivational and the interference effects of scarcity on information processing is developed. The results from two studies show that under scarcity, consumers’ perceptions of quality and monetary sacrifice exhibit different response patterns, depending on the relative price level and consumers’ motivation to process information. We provide insights into how these perceptions of quality and sacrifice are integrated to form perceptions of value. Additional analyses of thought measures provided further understanding of the underlying processes that influenced the evaluation of price information under scarcity.

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Notes

  1. Transforming the need for uniqueness measure into two levels—a median split—and then using it as a variable in a MANOVA also showed no significant main and interaction effects for this factor (p > 0.10).

  2. The authors thank the reviewers for these suggestions.

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Authors and Affiliations

  1. LeBow College of Business, Drexel University, 32nd and Market Streets, Philadelphia, PA, 19104, USA

    Rajneesh Suri

  2. California State University, Fullerton, CA, USA

    Chiranjeev Kohli

  3. University of Illinois at Urbana-Champaign, Urbana, IL, USA

    Kent B. Monroe

  4. Drexel University, Philadelphia, PA, USA

    Kent B. Monroe

  5. University of Richmond, Richmond, VA, USA

    Kent B. Monroe

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  1. Rajneesh Suri
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  2. Chiranjeev Kohli
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  3. Kent B. Monroe
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Correspondence to Rajneesh Suri.

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Suri, R., Kohli, C. & Monroe, K.B. The effects of perceived scarcity on consumers’ processing of price information. J. of the Acad. Mark. Sci. 35, 89–100 (2007). https://doi.org/10.1007/s11747-006-0008-y

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  • DOI: https://doi.org/10.1007/s11747-006-0008-y

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