Humans place a higher value on an object in limited supply
Description
Scarcity in marketing means to use the fear of limited supply to sell more.
Scarcity can also increase the perceived value of the item or service you're providing.
Example:
The online retailer tested a limited next-day shipping offer against another version in which the limited offer wasn’t shown.
The limited-time shipping offer boosted sales by 226%!
All it took was one line of text with a countdown.
Research:
A group of 200 female undergraduates rated the attractiveness of cookies as abundant or scarce supply and when the supply went dynamically from one state to the other. When cookies were becoming scarce, participants were told that it was either due to high demand or an accident.
In scarce supply, cookies were considered more desirable than in the abundant supply condition. They were also considered more valuable when they went from abundant to scarce, than when they were constantly scarce. The cookies scarce due to high demand were rated higher than when they were scarce accidentally. Also, cookies that were consistently abundant were rated higher than when they began scarcely and became abundant.
Application
Limited-Time Offers
Create promotions that are only available for a short period. This creates a sense of urgency, encouraging consumers to act quickly to take advantage of the deal before it expires. For example, "Flash Sale: 50% off all items for the next 24 hours only!"
Limited Stock Notifications
Inform customers when products are low in stock. This can be done through product pages, emails, or notifications. It plays on the fear of missing out (FOMO), prompting customers to purchase before the item runs out. For example, "Only 5 left in stock – order soon!"
Exclusive Access
Offer exclusive products, services, or content to a limited number of customers or for a limited time. This can create a feeling of exclusivity and privilege, motivating people to take immediate action to not miss out on the offer. For example, "Exclusive membership club: Sign up today to access members-only deals and products!"
