The Psychology of Scarcity: Why We Chase What We Can't Have

Remember the Concorde?

Ever stood in a virtual queue at midnight, heart racing, frantically refreshing your screen for those Taylor Swift concert tickets? You're not alone. The Concorde flew it’s last flight on November 26th, 2003. When British Airways announced the end of their Concorde flights in 2003, something similar happened. Sales didn't just increase – they skyrocketed overnight.

The weird thing:
Nothing about the Concorde changed.
Same supersonic speed.
Same luxury service.
Same premium price tag.

So why that sudden rush? Actually quite simple -> the psychology of scarcity – where less really does mean more.

The Science Behind Our "Must-Have" Mentality

Our brains are wired to want what we can't easily have. It's human nature, not just marketing pushing you to think so, allthough marketing does love to leverage this. It comes down to the principle of scarcity. Companies like Booking.com and Starbucks effectively use scarcity by highlighting limited availability or time-sensitive offers, which can significantly boost sales and engagement. And not just those two use it a lot.

Think about these examples:

• The iPhone that sells out in pre-orders

• The Jordan sneakers that resell for thousands

• The PlayStation 5 launch that crashed websites

• The reservation-only restaurant with a 6-month waiting list

• The musical that is selling tickets for it’s 12th last time..

None of these necessarily offer better quality. But their scarcity makes them irresistible.

So what it is exactly? The principle of scarcity, as outlined by Robert Cialdini, is a psychological phenomenon where consumers perceive items as more valuable when they are in short supply. This principle is leveraged in marketing strategies to create a sense of urgency, encouraging consumers to act quickly to avoid missing out on a product or service. So, supply and demand, it’s also embedded into our brains it seems.

You’ve seen similar things, Flash Deals, Tonight Only, Black Friday, etc.

The Dark Side of Scarcity Marketing

Let's be honest – the marketing world has abused this principle:

• Fake countdown timers

• Artificial stock limitations

• Never-ending "limited time" offers

• "Only 2 rooms left!" (that magically reappear tomorrow, or a person in a different browser seeing a different number of rooms)

We've all seen it. We've all rolled our eyes at it. Overuse or misuse of the scarcity principle can lead to consumer distrust if perceived as manipulative. Continuous claims of limited availability without actual scarcity can erode trust in a brand. Additionally, it may not be suitable for all products or services, particularly those where consumers prioritize long-term availability. Is it right to use scarcity in marketing? When done ethically, scarcity isn't manipulation – it's communication of real value and genuine limitations.

Before using scarcity in your marketing, ask yourself:

1. Is this limitation real?

2. Does it add value for customers?

3. Would I feel good explaining this to my grandmother?

4. Am I being completely transparent?

Why Most Scarcity Marketing Fails

Here's where most marketers get it wrong:

1. They focus on the "limited" part without building value first

2. They create fake urgency that insults customer intelligence

3. They forget that scarcity without authenticity breeds skepticism

The Scarcity Sweet Spot: Authenticity + Value

Want to use scarcity effectively? Here's your blueprint:

1. Build Real Value First

• Show why your offering matters

• Demonstrate clear benefits

• Create genuine desire

2. Highlight Unique Elements

• What makes your offer special?

• What can't be replicated?

• What will they genuinely miss?

3. Create Authentic Urgency

• Use natural limitations

• Be transparent about constraints

• Explain why the limitation exists

The Netflix Effect: Scarcity in the Digital Age

Remember when Netflix announced they'd remove "Friends" from their platform? Suddenly, everyone needed to binge-watch it – even those who'd seen it multiple times. Digital products changed the game. When something can be infinitely copied, how do you create genuine scarcity?

The answer: Through experience and timing.

Making Scarcity Work in 2025

Modern scarcity marketing needs to evolve. How and into what?

1. Experience-Based Scarcity

• Limited-time collaborations

• Exclusive member access

• Time-bound opportunities

2. Knowledge-Based Scarcity

• Expert-led workshops

• Insider information

• Early access privileges

3. Community-Based Scarcity

• Member-only events

• Limited community sizes

• Exclusive group access

Your Turn to Act

What makes your offering truly unique? What would people genuinely miss out on if they wait? That's your authentic scarcity angle. Use it wisely. Because in a world of fake urgency, real value combined with genuine scarcity still cuts through the noise. Especially in E-commerce this simply is not something we can or should ignore, but I think we should be done with teasing limited Black Friday deals for weeks only to then offer pretty much the same discount as we did a couple of weeks ago right?

FAQ

• Can scarcity marketing work for digital products?

  Yes, through exclusive access, limited-time features, or early-bird privileges.

• How do you create scarcity without being manipulative?

  Focus on communicating real value and genuine limitations rather than creating artificial urgency.

• What's the difference between good and bad scarcity marketing?

  Good scarcity marketing emphasizes authentic value and real limitations; bad scarcity relies on manipulation and fake urgency.

• How long should a scarcity campaign run?

  It depends on your product and audience, but generally, shorter periods (24-72 hours) work better than extended campaigns.
  
  Of course you need to consider what you’re selling. Bugatti doesn’t need to add a 24-hour only special edition car, that makes no sense.

• Can scarcity backfire?

  Yes, especially when customers perceive it as artificial or manipulative. Always prioritize authenticity over urgency.

  In e-commerce overall it’s good to keep a short line with customer service so you can monitor this and build boundaries.
  
  Nothing is as good of an indicator as customer complaints.