On October 7, 2009
Scarcity Makes Consumers Buy More
At the toy store, what do you do when confronted with an empty space where your child’s most desired gift was to be? You are likely to buy something else, an item you previously wouldn’t have purchased. “When one product is sold out, customers have the perception that an available product might also sell out if they don’t buy it now. It creates a sense of immediacy, which is a perfectly rational thought process, so the customer buys the other product.” That is how professor Paul Messinger at the University of Alberta School of Business explained recent research to CNN. Companies such as Apple have understood this phenomenon for awhile. They even deliberately create scarcity, initial product shortages, to drive…
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