Month: August 2020

CU: Our paradigms are inevitably subjective. They are constructed from the interpretation of the knowledge that we already posses and compel us to shape our future interpretations in a similar manner.

Explanation with reference to the River Boat Story: In terms of sensory information, both the steam boat pilot and the passenger witnessed the same scene. The pilot possessed knowledge of how to navigate the river because he was trained in that manner. However, the passenger was not: he did not posses any knowledge of the same regard. Therefore, the preconception with which they both viewed the state of the river were distinct. Upon noticing different details about the river, the pilot used what he had learnt previously about the river to interpret what they signified: a warning. On the other hand, (as a product of lack of education on the same subject) the passenger shaped his interpretation on what little he had experienced in the past – perhaps that the setting sun was quite a vision. Thus, he simply resolved to seeing the beauty in the sight that lay before him. Perhaps, it is not that the pilot did not see the beauty of the river in that moment, but that the additional knowledge he had of the river, overshadowed that reaction with something that was more pre-eminent. By mastering the language of the river, it can be argued that the pilot has both ‘gained’ and ‘lost’ something. He has lost the ability to ever simply see and appreciate the beauty of the river alone without dread invading his thoughts. However he has gained a more valuable and realistic understanding of the river which grants him the advantage of knowing how to avoid a few of the dangers that he would have previously been ignorant to.

In today’s world, what decides if a product or service is successful or not, no longer solely depends on how practical or useful it might be. For a product to truly be attractive to consumers, it doesn’t even have to be unique – it just has to be marketed well. And marketing often relies upon the help of a human science: psychology. Businesses attempt to understand our innate cognitive biases and decision-making processes in an endeavour to take advantage of what drives our purchasing behaviour. One notable marketing tactic used is scarcity. 

Austrian neurologist and founding father of psychoanalysis, Sigmund Frued, first proposed the ‘pleasure principle’ in 1895. He suggested human’s innate tendencies were to seek pleasure and avoid pain. Despite this reductionist approach, in many ways, the foundation of scarcity as a tactic perhaps relies on this very theory. 

A professor at Cornell, Dr.Michael Lynn, explored “The Psychology of Unavailability: Explaining Scarcity and Cost Effects on Value,” compiling research from economic, psychological and sociological literature. A significant point mentioned addresses “unavailability” as a “heuristic cue that sometimes implies quality and other desirable attributes.” Heuristics are simplified decision strategies often used by humans, which while efficient, are often prone to biases – especially when our assumptions are false. For example, when products are presented as scarce, they often appear as more valuable to us then they are in reality. This entices us to make sometimes uneconomical or exorbitant purchases in the place of more reasonable or cost-efficient options. Furthermore the paper discusses how “the possession and display or unavailable resources,” acts as “a source of status.” The appeal of unavailable commodities can evidently be attributed to our vanity. For instance, the rising streetwear brand ‘Supreme’ used limited-edition, timed “drop” models in order to exploit consumer’s irrational desires. Having access to something that other people want but cannot have tempts us with the illusion of exclusivity and power – something which is hard to resist. 

The tactic of scarcity is quite intriguing – especially when one considers that despite being aware of this strategy, consumers cannot help but fall for it anyway. It shows us the amount of power that presentation can have on our perception of value.