Consumption of any product will relate to the availability of that product in the market, the pattern in which availability of a product change will have a great impact in consumption pattern of the product. It is a topic of great interest in the field of marketing research that how unavailability of a certain product can be related to satiation because this relation can help companies to create possible strategies to reduce satiation and improve demand for their products.
This study is about understanding how the perception of people change when there is a limited availability for any product and also about how the satiation of that product changes in accordance with the availability. This study tries to find the relation between Availability, Consumption, Attention, Perception, Price and Quality of a product to find the relationship between limited availability and rate of satiation.
For finding the relationships among the above attributes this study applies correlation and regression techniques through SPSS package by these techniques the basic relation between the variables is obtained and the relation between satiation and limited availability is also obtained, Here primary data collection is performed for conducting research in this study.
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Rate of satiation and limited availability of goods
1. 1
Abstract
Consumption of any product will relate to the availability of that product in the market,
the pattern in which availability of a product change will have a great impact in consumption
pattern of the product. It is a topic of great interest in the field of marketing research that how
unavailability of a certain product can be related to satiation because this relation can help
companies to create possible strategies to reduce satiation and improve demand for their
products.
This study is about understanding how the perception of people change when there is a
limited availability for any product and also about how the satiation of that product changes in
accordance with the availability. This study tries to find the relation between Availability,
Consumption, Attention, Perception, Price and Quality of a product to find the relationship
between limited availability and rate of satiation.
For finding the relationships among the above attributes this study applies correlation
and regression techniques through SPSS package by these techniques the basic relation
between the variables is obtained and the relation between satiation and limited availability is
also obtained, Here primary data collection is performed for conducting research in this study.
2. 2
1. Introduction
Satiation is termed as being full or beyond satisfaction this term has a great importance
in the marketing field because it relates to a consumer who has reached a situation where he
feels that he touched the saturation level of consumption for a particular commodity. The
satiation towards any commodity is due to the over consumption of it, this will in turn reduce
its demand, which makes marketers to study about it so that they can reduce the effects of
satiation.
So, to reduce the effect of satiation on consumer buying behaviour marketers are trying
to experiment on different possible ways of achieving it. One of the important way of reducing
satiety is about reducing the availability of such commodity which can in turn show a decline
in the satiety levels in a customer because the commodity becomes limitedly available and it
will create a sense of hedonic nature to the commodity and which will finally create an interest
to buy in the mind of the customer. This is the easiest way to reduce the effect of satiety on any
commodity but this theory is true for only certain cases but it is not universally used way to
reduce satiety.
To create demand for any old product or to rejuvenate the demand for heavily used
products marketers have to take care about a lot of aspects to reduce the satiety created in the
minds of its targeted customers, so they have to take care of many important aspects like
Consumption, Attention, Perception, Price and Quality besides Availability.
So by analysing the customerâs rate of consumption or demand for a product, attention
he gives towards any product, the perception of his towards the commodity, price and quality
of the commodity you can analyse how much he is satiated towards that product.
This paperâs intention is to discuss about how these terms are related to satiety and
which term if varied can reduce the value of satiety in the minds of the customer. This will be
achieved by using inferential statistics. Also the existing literature is taken for support
regarding the theory of the study.
3. 3
2 Literature Review
Sevilla 2014, termed limited availability as a way to reduce attention to the quantity
consumed and also stated that when people mindlessly follow the norm of others behaviour
they may play less attention to consumption of quantity becoming less satiated, here the author
also considered attention to the quantity consumed as a key mechanism, this paper also
provided directions regarding the best ways of how to slow satiation out of those ways, It was
shown that the perception of limited availability reduces rate of satiation. Their research is
causal type with a sample of Under graduate Students from the university of Georgia used for
five different studies constituting the following sample sizes (113,177,312,122,83)) they
achieved the results by using mediation analysis in Regression.
Galak 2011, in his findings about consumption intervals states that when consumers are
given relatively free reign over what inter-consumption interval to set, they choose for
consuming very quickly, it was also observed in this research that consumers said that they
would consume roughly at the even when the inter-consumption interval is made salient for
consumers, they do not appreciate that longer intervals lead to greater enjoyment. Here college
students from U.S.A are the sample used like (45(35-females) (age-19.9) and students (100(55-
females) (age-19.3)) the research methodology used in here is one way ANOVA
Khan and Dhar 2005, state that consumers only make some decisions after taking
decisions regarding other choices or judgements they emphasis on prior choices which
influence the choices regarding the decision making. They propose that licensing can help in
creating the intent to be virtuous which in turn reduces negative self-attributions associated
with the purchase of relative luxury products. They also say that the licensing effect operates
by providing a temporary boost in relevant self-concept. The sample used in this research is
obtained from Yale, United States of America and the sample size is (Five samples of Under
Graduate Students (108, 93, 80, 120 and 66)) and Ï2
â Test is used for the purpose of the
research.
Reutskaja and Hogarth 2006, observed that people are better with more choices, studies
also showed that they often prefer to choose from small sets of alternatives. They also proposed
that satisfaction from choices is an inverted U-shaped function of the number of alternatives
which is derived theoretically by considering the benefits and costs of different numbers of
they also manipulated the perceptual costs of information processing and demonstrated how
this affects the resulting âsatisfaction function.â They further indicate that satisfaction when
4. 4
choosing from a given set is diminished if people are made aware of the existence of other
choice sets. Here four different experiments are conducted in the countries of Barcelona,
Ukraine, Belarus and Spain and they used ANOVA testing for this research paper.
Lavoie 1995, identified the six principles of procedural rationality relating to satiation.
The principle of satiable wants, the principle of separable needs, the principle of subordination
of needs, the principle of the growth of needs, the principle of non-independence. The study
also tried to identify the groups of goods that would correspond to the various needs and sub-
needs of the buyer, and also traced the order of acquisition of these various groups of goods,
they also said that rather than trying to estimate imaginary demand curves, empirical studies
should focus on estimates of income elasticity and price elasticity, this research occurred in
Ottawa, Canada.
Chartrand, Huber ET all 2008, identified that there is a continuous interest in the role
of goals in the consumer decision making process. They also presented the evidence suggesting
that goals can be activated by situational cues and pursued until satiated by real choices and
that the activation as well as the pursuit can occur unconsciously. This article also made an
attempt at challenging the notion that mental functioning needs to be conscious by presenting
a case for revising it on the lines that a substantial part of our adaptive mental functioning may
actually be based in the nonconscious processing. Ï2
â Test is used for this research and the
research happened in duke university of U.S.A, random sampling is used for this process.
Jeffrey 2001, opinion is that buyers do switch more seriously between flavors. Be that
as it may, the subordinate variable was buy, and both tactile particular satiety and assortment
looking for are utilization based wonders and in the second study he says we a one of a kind
information set that permits us to look at assortment looking for at its heart i.e., utilization at
the individual level. This is imperative for two reasons. Initially, buyers might have a family
unit stock of a few assortments of item offerings and can switch between property levels
without the investigator's learning. Assortment looking for may be conceal on the off chance
that just buys are measured. Second, any watched pricing so as to exchange is unaffected, he
used university of Pittsburgh as the place for research he used ANOVA for his research in this
paper
Different samples of conceivably constraining conditions incorporate when individuals
normally sort at more particular levels it is stated by Joseph (2007), at the point when
individuals cannot segregate the distinctive angles even with names, or when individuals don't
5. 5
trust the name has any significance to the experience. This work adds to our comprehension of
satiation. Individuals settle on choices consistently that rely on upon how satisfied they feel.
These choices regularly happen inside of a bigger cycle that incorporates utilization, satiation,
and unconstrained recuperation. Much about satiation stays to be caught on. On the off chance
that specialists need to offer shoppers some assistance with coping with satiation, they cannot
disregard order impacts. He conducted the research in Wharton university of Pennsylvania and
used ANOVA as his research methodology to reach his conclusion.
Youjae 2006, according to his exploration he exhibited that the assortment looking for
inclination that usually happens in decision for self is considerably more prominent in decisions
for others, and it investigated the hidden components for this marvel. In concurrence with
Ratner and Kahn, we found that the assortment looking for inclination expanded when choosers
were considered responsible for their decisions for others contrasted with when they were not.
We too explored the intrapersonal instrument behind the more noteworthy assortment looking
for inclination in decisions for others. This research was conducted in the graduate school of
business at the University of Chicago with a sample size of 115 students of marketing, he used
ANOVA for his research conclusions.
Lades 2011, In the model, people apportion their salary utilizing a straightforward
coordinating math with the goal that differential need satiation motion crosswise over
requirements decipher into long-run changes of purchaser conduct. The model also recreated
some experimental regularities that conventional augmentation models experience issues to
produce. At the point when moderately poor people match, they spend more than it is ideal on
extravagance items, for example, status products and short of what it is ideal on necessities, for
example, nourishment. The deviations from deal conduct when people match are in this manner
bigger for poor people than they are for rich people. Appropriately, the model proposes that
the imbalance in a general public measured in terms of prosperity can be higher than the
imbalance measured as far as pay. This research took place in max Planck institute of
economics with a sample size of 300 employees with the help of mediation analysis in
regression for reaching final conclusions.
Rangaswamy 2000, states that many executives are very concerned that online
consumers will focus on price and this will result in strong price competition, At first glance
the results swamy got seemed to support this contention but further analyses indicated a more
integrated story, mostly with respect to grocery products. First, people currently online may
6. 6
not be as price sensitive like normal population. Even if the online population becomes
comparable to the general population, the combined effects of price and promotion seem to be
stronger in regular stores than in online stores. Even after accounting for the fact that online
promotions are better signals of price reductions, we find that offline promotions induce larger
changes in brand choices. This is partly because we have observed a low correlation between
point-of-purchase (POP) activities and price in traditional supermarket chains. This research
was conducted in Chicago with two different samples of 300 and 1039 with the help of
regression analysis.
Swait and Adamowicz 2004, they did developed a specific model form that enables us
to test this idea empirically. The examination of several SP choice experiments and RP data
sets lends strong support that what we term âchoice complexityâ is an important factor to
consider when modelling choice behaviour, both at the task design stage and during
econometric model estimation. By implication, we surmise that complexity can also impact the
pooling of multiple choice data sources, but that issue is left for future research .Individuals
display a wide distribution of information processing capability. For example, level of expertise
should lead to different signal to noise ratios between individual respondents. Certain socio
demographics may be correlated with respondentsâ ability to process information. Thus, an
interesting avenue for research would be testing for the effect of different indicators of
processing capabilities when collecting and modelling choice data. Indicators of product class,
or the proportion of income that the product class represents for the individual, may also
provide insight into the apparent ability to choose of respondents and the output to complexity.
The research took place in Florida with a sample size of 13,950 and with the help of discrete
choice analysis.
West, Brockett, et all 1997, in Austin, Texas with the help of comparative analysis
presented a set of implementation procedures for a researcher to follow when using neural
networks to develop predictive models. Neural network models differ from other statistical
procedures in that the model does not presuppose any linear or causal relationship (e.g., logistic
regression, maximum likelihood factor analysis, discriminant analysis, etc.) between the input
variables and the output variable(s). Traditional statistical models are able to deal with
nonlinear functional relationships by incorporating the appropriate exponential terms or
multiplicative interactions but the form of nonlinearity must be known a priority.
7. 7
3 Research Methodology
The study applies descriptive research design because (Monsen, Horn 2007) descriptive
research is a way in which we can effectively obtain information that is applicable in deriving
hypothesis as well as proposing associations. Descriptive research design is used when the
researcher tries to describe about the specific behavioural aspects as they occur in their natural
form.
In this study we are applying convenience sampling because (Gravetter 2015), it is a
Simple way for doing sampling process and helpful in generating hypothesis, Data collection
can be done in an economical way within a short duration and costumers selected through this
convenience sampling will be using any product of their choice irrespective of their age and
income group hence, they can give the responses based on the products which they use for the
given questionnaire, hence the purpose of data collection is achieved by using convenience
sampling.
In the study primary data from individual respondents is received for a set of
questionnaire which deals with all the key elements regarding satiation which is collected from
customers in the form of convenience sample of size 100 out of which 71 are males and 29 are
female respondents they comprise of 50 students, 50 employees and the age group of the sample
obtained consists of 76 people who are of the age 18-25 and the remaining 24 people belong to
the age group of 26 and above.
The questionnaire used for study in here is a 5 point Likert scale (Bruce 2008), the
questionnaire is developed by observing the previous studies conducted relating to this study,
it is made in such a way that it embeds the essence of all the keywords relating to the limited
availability and rate of satiation this questionnaire is also designed in a simple and
understandable way with normal vocabulary which every respondent can understand. The
questionnaire as a whole is developed according to the approach used by Sevilla (2014) in his
study of satiation.
Using this data correlation is done between different elements with a level of
significance of 0.05 and if the condition of correlation is satisfied finally regression is done
with a level of significance of 0.05 to find the percentage of relation between the compared
elements, based on this the basic relations and finally the relation between the rate of satiation
and limited availability is calculated.
8. 8
Correlation is one of the most common and most used statistics tool (Sharma J K 2005).
Correlation is a single number that describes the relationship between two variables and the
level of strength between the same variables can also be determined. Regression is a statistical
approach of modelling the relationship between a dependent variable and one (or) more
independent (exploratory) variable(s).Due to this reason correlation and regression is applied
in this study.
By using the significance values as 0.05 and 0.05 for correlation and regression
respectively the probability of eliminating the null hypothesis is reduced and the most probable
results are obtained.
9. 9
4 Data Analysis
Study 1: here the correlation is applied between limited availability and quantity consumed
Here,
H0 = There is no relation between limited availability and quantity consumed.
Ha = There is relation between limited availability and quantity consumed.
The SPSS results relating to limited availability and quantity consumed are:
Fig 1 (Correlation between quantity and limited availability)
Here we obtained a positive correlation between quantity consumed and limited
availability Now by applying regression on the above two variables in SPSS the results are:
Fig 2 (Regression between quantity and limited availability)
10. 10
The R Square value inferred here is 0.153. So, study says that limited availability and
quantity consumed are related by 15.3%.
Study 2: here the correlation is applied between limited availability and quality.
Here,
H0 = There is no relation between limited availability and quality.
Ha = There is relation between limited availability and quality.
The SPSS results relating to limited availability and quality are:
Fig 3 (Correlation between limited availability and quality)
Here we obtained a positive correlation between quality and limited availability Now
by applying regression on the above two variables in SPSS the results are:
Fig 4(Regression between limited availability and quality)
11. 11
The R Square value inferred here is 0.102. So, study says that limited availability and
quality are related by 10.2%.
Study 3: here the correlation is applied between quality and quantity consumed.
Here,
H0 = There is no relation between quality and quantity consumed.
Ha = There is relation between quality and quantity consumed.
The SPSS results relating to quality and quantity are:
Fig 5(Correlation between quality and quantity)
Here we obtained a positive correlation between quality and quantity, Now by
applying regression on the above two variables in SPSS the results are:
Fig 6 (Regression between quality and quantity consumed)
The R Square value inferred here is 0.221. So, study says that quality and quantity
consumed are related by 22.1%.
12. 12
5 Discussion
Study 1: in this specific study we tried to relate between limited availability and quantity
consumed, the correlation significance is satisfied with the value 0.01.
From this it can be clearly stated that limited availability and quantity consumed are
clearly correlated with each other and the R square value derived also shows up to what level
limited availability effects the quantity consumed.
This is the basic relation which is to be derived here. So, our study is fruitful regarding
this aspect
Study 2: in this specific study we tried to relate between limited availability and quality, the
correlation significance is satisfied with the value 0.01.
From this it can be clearly stated that limited availability and quality are clearly
correlated with each other and the R square value derived also shows up to what level limited
availability effects the quality.
With this inference it can be stated that limitedly available goods are high in terms of
quality and if a product is made limitedly available or is in limited availability the product is
assumed to be a high quality product, this is another important inference obtained in here.
Study 3: in this specific study we tried to relate between quantity consumed and quality, the
correlation significance is satisfied with the value 0.01.
From this it can be clearly stated that quantity consumed and quality are clearly
correlated with each other and the R square value derived also shows up to what level limited
availability effects the quality.
With this inference it can be stated that quality and quantity consumed are interrelated
and quantity consumed definitely has its effect on quality of the product both the terms are
positively correlated with each other.
13. 13
6 Conclusions
This study identifies limited availability as a path in reducing attention towards the
quantity consumed which in turn slows the satiation rate. It can also be inferred that limited
availability is also certainly not unique in this ability. Further research about uncovering
different factors that could similarly slow satiation rate as it works with limited availability
should be taken up.
As an example of special case by Cialdini 2009 when people start following others
blindly while they consume, they may not pay apt attention regarding quantity consumed and
thus grow to be less satiated.
By identifying the relations between quantity consumed, quality and quality,
availability as very important mechanisms, the present study provides an orientation to
further research towards recognizing the best ways to slow the rate of satiation or reduce the
rate of satiation.
14. 14
7 References
1. Cialdini, Robert B. (2009), Influence: Science and Practice, 5th ed. Boston: Allyn &
Bacon.
2. Sevilla, Redden. (2014), Limited Availability Reduces the Rate of Satiation.
3. Galak J. (2011), Too Much of a Good Thing: Insensitivity to Rate of Consumption
Leads to Unforeseen Satiation.
4. Khan U, Dhar R. (2005), Licencing Effect in Consumer Choice.
5. Reutskaja E and Hogarth M. 2006, Satisfaction in choice as a function of the number
of alternatives: When âgoods satiateâ but âbads escalateâ.
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Supermarkets: The Effects of Brand Name, Price, and Other Search Attributes.
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Consumer Behavior: A Theoretical and Empirical Approach for Incorporating Decision
Complexity into Models of Consumer Choice.
10. West P, Brockett P, ET all. (1997), A Comparative Analysis of Neural Networks and
Statistical Methods for Predicting Consumer Choice.
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15. Joseph P. (2007), Reducing Satiation: The Role of Categorization Level.
16. Youjae J. (2006), Variety-Seeking Tendency in Choice for Others: Interpersonal and
Intrapersonal Causes.
17. Lades L. (2011), the impact of differential satiation dynamics on changing consumer
behavior, wellbeing and innovative activity.
18. Gravetter J (2015), Research Methods for the Behavioral Sciences, 147-150.
19. Bruce I (2008), Questionnaire Design: How to Plan, Structure and Write Survey
Material for effective market research, 66-79.
15. 15
20. Sharma J K (2005), Text Book of Correlations and Regression, 1-10, 91-101.
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