The Psychological Effects of Perceived Scarcity on Consumers’ Buying Behavior in Addis Ababa, Ethiopia

Abstract

The aim of this study is to analyze the psychological effect of perceived scarcity on consumer buying behavior played by the perception that a particular good is scarce and that this scarcity is intentionally created by the marketer in Addis Ababa, Kolfe kerranio sub city. In doing so, the buying value perceptions of the Kolfe kerranio sub city consumers in Addis Ababa were examined. Descriptive type of research design, Quantitative and Qualitative approach were employed to achieve the research objectives. The research location selected due to the convenience and proximity of area to the researcher and 384 was the sample size. In addition, a demographic questionnaire, and psychological effects influencing buying behavior value were administered. Data from the quantitative survey were analyzed using percentages, t-test, and Pearson's correlation. From the analysis of the relationships between demographic measures and measures of buying behavior, sex was found to have significant correlation with almost all the dimensions of psychological effects values, and the total decision to buy, except avoid regret and well planned values. Education level has significant correlation with avoid the worst and avoid fear psychological effects values. Monthly income has significantly negative relationship with avoid fear value (r= -.128, p<0.001), and avoid regret value (r=-.182, p<0.001), while marital status has significantly positively correlated with well-planned value (r=.135, p<0.01) and negatively correlated with avoid the worst value (r=-.216, p<0.01). Family size has significant positive relationship with well-planned value (r=.133, p<0.001), and avoid regret value (r=.145, p< 0.01). In all the correlated cases, the variables show negative relationship, which means that as one of the variables increases, the other tends to decrease, and vice versa. Based on the findings, implications are discussed and further research is suggested.