Persuade to Win: Part5 – Scarcity

Continuing this series on the Psychology of Persuasion the 5th principle that Robert Cialdini talks in his book is called “Scarcity”. People will tend to value resources that are scarce. People feel products or services that are available for a limited duration have more value and hence in more demand. It is based on the belief that the more scarcely available the more valuable the resource.

The Scarcity Principle primarily focusses on two techniques used by advertisers , marketers , restaurant owners or even businessmen to make customers make instant purchase. You tend to buy the product  service not because you need it but due to the lack of availability and to maintain your status in society.

1. The Limited Edition Principle : Creates added value to the product by reducing its availability.
2. The Deadline Principle:  Puts a time limit on product availability

Both these techniques create an emotional experience and make a psychological impact in the mind    of the consumer. We tend to feel a sense of superiority or high status , a feeling of having something which others don’t possess and thus internally makes us feel happy about our purchase.

Let me share with you a few examples where marketers have successfully used these techniques.

1.  Nike introduced the “Jordan Sneaker” as a limited edition. Sales increased in all Nike stores for fans to purchase that limited edition sneaker.

• Many Hotel websites sell rooms within their hotel by intriguing customers. They either say they are sold out or only a few rooms left. Reading online reviews and getting trapped by the unavailability of rooms we tend to book hotel rooms in advance.

• Bartenders use the phrase “Last Call” before the bar closes to push consumers to buy drinks in advance even though they have already had enough.

• Hip hop artist in their music mostly state about thigs that are rare may be a luxury vacation , luxury car , rare jewellery etc to create an artificial demand or need amongst listeners to buy or even to aspire to have such products.

• Fruit  and Vegetable vendors use this principle very well. They are aware of the seasonal fruits and vegetables and hike the price of these items. Since its seasonal and available only during a short period we tend to buy without thinking about the price. Eg: Alphonso Mangoes from Ratnagiri , Strawberries from Mahableshwar .

• Job Recruiters use the deadline techniques while offering a job to a prospective candidate. The purpose is to create some amount of pressure, stress and tension in the candidates mind which may influence them to accept the offer.

As humans we act against restriction. We tend to do things which others may forbid us from doing. We want to experience the reason behind the restriction.  This desire makes our mind increasingly think about the positive aspects of purchasing a product or service. Thus  this principle does not refer to completing a need  but focuses more upon the desire to have something different.