ScarcityOpen Access

Scarcity

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

Setup

Setup

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.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

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A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Results

Results

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.

Study graph
np_read_2490885_000000

Worchel, Lee & Adewole (1975). Effects of supply and demand on ratings of object value. Journal of Personality and Social Psychology.

Key Takeaways

1
1

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.

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2

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.

Takeaway image
3
3

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.

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4
4
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Scarcity

Scarcity

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.

The study

Setup

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.

Results

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.

study graph
np_read_2490885_000000

In detail

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Open access, foundational Nuggets

Scarcity

Scarcity

We value things more when they’re in limited supply

Social Proof

Social Proof

We copy the behaviors of others, especially in unfamiliar situations

Prospect Theory

Prospect Theory

A loss hurts more than an equal gain feels good

Reciprocity

Reciprocity

We’re hardwired to return kindness received

Framing

Framing

We make very different decisions based on how a fact is presented

Loss Aversion

Loss Aversion

We feel more negative when losing something than positive when we gain it

Default Effect

Default Effect

We tend to accept the option pre-chosen for us

Anchoring

Anchoring

What we see first affects our judgement of everything thereafter

Fast & Slow Thinking

Fast & Slow Thinking

We make knee-jerk spontaneous decisions that can cause regretful damage

Dynamic Norms

Dynamic Norms

We’re more likely to change if we can see a new behavior developing

Salience

Salience

Our choices are determined by the information we're shown

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Prospect Theory
A loss hurts more than an equal gain feels good

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