Consumer Psychology, Scarcity Marketing, B2C Marketing
There’s a lot of information on scarcity marketing out there: tactics you should try, benefits of incorporating scarcity, ideas for using scarcity in your marketing and more. With so much content to choose from, it can get overwhelming trying to figure out where to start.
Collected from three insightful blog posts on scarcity marketing, we’ve listed quotes from marketing and consumer psychology experts to create more clarity around the topic.
1. On the fear of missing out
“The fear of missing out intensifies upon the perception of its scarcity. When an individual knows that supply for something is limited, such as one-time offers or exclusive products, they are likely to make decisions based on fear instead of the merit or need of the product.” - Shagoon Maurya, psychotherapist and found of ursafespace
Takeaway: The fear of missing out (FOMO) is an urgency marketing principle that is brought on by scarcity. When consumers see an item is scarce, or they perceive it as such, the value of that item increases. The idea that something valuable might slip away before they can have it as their own, can make consumers anxious and as a result, they can experience FOMO.
Maurya isn’t saying consumers won’t spend any time considering the quality of a product nor is she implying that fear is an emotion consumers shouldn't experience. In fact, such powerful emotions can actually aid you in guiding consumers to products they need but would have otherwise overlooked.
(Learn more about FOMO and scarcity.)
2. On the desire for self-improvement
“We've done a lot of research on how scarcity affects the type of marketing appeals that people respond to. And one thing that we have found consistently, which I always think is positive, is that scarcity actually increases the desire for self-improvement.” - Dr. Kelly Goldsmith, Associate Professor of Marketing, Owen Graduate School of Management
Takeaway: During a 2020 podcast interview with Quikly, Goldsmith shed light on one reason scarcity marketing works so well: Consumers have a desire to be better and in some cases, that also means being better than those around them. This doesn’t have to be a bad thing — if your consumers have a desire to learn more, eat healthier or shop more sustainably, you can make a point to tailor your marketing and offer content that is in line with their desires.
(Read more about the psychology of scarcity according to Goldsmith.)
3. On customer perceived value
“The key is to create a promotion or experience that your target audience will perceive as rare, luxury or 'once in a lifetime.’ By doing this, you'll be able to capitalize on the consumer's FOMO and drive them to take your desired action.” - Angel Martins, Managing Director, Finsbury Media
Takeaway: Many high-performing campaigns that leverage scarcity focus on emphasizing the rarity of promotions. Because scarcity creates a positive association with the product or service (a heightened sense of value, exclusive perks and increased motivation to purchase), many brands have picked up on FOMO’s power. Limited-edition sneakers, clothing, sporting events, concerts, cars and other highly coveted concepts help create a sense of urgency, encouraging consumers to act quickly in fear of missing out.
Scarcity marketing is made up of various psychological elements, many of which focus on the human desire to benefit from exclusivity. An emphasis on your product’s unique and time-sensitive attributes is the key to highlighting scarcity in campaigns.
