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.