We value things more when they’re in limited supply
Scarcity is a core economic principle, affecting perceptions of desire & value and motivating us to act now.
Worchel, Lee & Adewole (1975). Effects of supply and demand on ratings of object value. Journal of Personality and Social Psychology.
The study
146 people were asked to rate identical cookies that were either presented in a jar as scarce or in abundance. They were then asked how likely they would be to want to eat a further cookie.
When scarce, the cookies were rated as more desirable and having a higher value. They were also seen as more valuable when going from an abundant state to scarce than when always scarce.
Worchel, Lee & Adewole (1975). Effects of supply and demand on ratings of object value. Journal of Personality and Social Psychology.
Key Takeaways
Scarcity comes in 4 flavors: Quantity, Time, Access & Rarity.
Control quantity. To increase perceived value of your product, release it in smaller and diminishing quantities, emphasizing its finite nature.
Restrict time. When the clock is ticking and we’re overwhelmed, we take mental shortcuts that speed up decision-making. Motivate customers by emphasizing the limited time remaining in which to act.
Limit access. Restricting access to your products or services will increase desire and perceived value. Do this selectively for certain features and / or customer segments.
In further detail
We value things more when they’re in limited supply
Scarcity is a core economic principle, affecting perceptions of desire & value and motivating us to act now.
Worchel, Lee & Adewole (1975). Effects of supply and demand on ratings of object value. Journal of Personality and Social Psychology.
The study
146 people were asked to rate identical cookies that were either presented in a jar as scarce or in abundance. They were then asked how likely they would be to want to eat a further cookie.
When scarce, the cookies were rated as more desirable and having a higher value. They were also seen as more valuable when going from an abundant state to scarce than when always scarce.
Worchel, Lee & Adewole (1975). Effects of supply and demand on ratings of object value. Journal of Personality and Social Psychology.
Key Takeaways
Scarcity comes in 4 flavors: Quantity, Time, Access & Rarity.
Control quantity. To increase perceived value of your product, release it in smaller and diminishing quantities, emphasizing its finite nature.
Restrict time. When the clock is ticking and we’re overwhelmed, we take mental shortcuts that speed up decision-making. Motivate customers by emphasizing the limited time remaining in which to act.
Limit access. Restricting access to your products or services will increase desire and perceived value. Do this selectively for certain features and / or customer segments.
We value things more when they’re in limited supply
The study
146 people were asked to rate identical cookies that were either presented in a jar as scarce or in abundance. They were then asked how likely they would be to want to eat a further cookie.
When scarce, the cookies were rated as more desirable and having a higher value. They were also seen as more valuable when going from an abundant state to scarce than when always scarce.
In detail
Scarcity
We value things more when they’re in limited supply
Social Proof
We copy the behaviors of others, especially in unfamiliar situations
Prospect Theory
A loss hurts more than an equal gain feels good
Reciprocity
We’re hardwired to return kindness received
Framing
We make very different decisions based on how a fact is presented
Loss Aversion
We feel more negative when losing something than positive when we gain it
Default Effect
We tend to accept the option pre-chosen for us
Anchoring
What we see first affects our judgement of everything thereafter
Fast & Slow Thinking
We make knee-jerk spontaneous decisions that can cause regretful damage
Dynamic Norms
We’re more likely to change if we can see a new behavior developing
Salience
Our choices are determined by the information we're shown