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
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.
In detail
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.
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
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.
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.
Scarcity
We value things more when they’re in limited supply
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.
In detail
Pairings
Use distinction to foster uniqueness
There are many ways to convey scarcity. If you have a range of products that are all similar in visual characteristics, consider exploring how a limited edition can feel especially valuable through the use of contrast. A rare black item amongst an otherwise white collection.
Where can you use contrast both dramatically and sparingly to harness its unique power?
Give what is otherwise hard to come by
When rewarding behaviour, consider gifts that are rare or cannot be attained by any other means. For example, consider manufacturing a product that can only be attained by those on the highest tiers of your loyalty programme. Or, an invitation to special event that only happens once a year.
Where can you provide a scarce reward to make people feel valued? Remember, scarce needn't mean expensive, just restricted in public supply.
Create a one-of-a-kind product feeling
Allowing customers to tailor your product to their needs is central to feelings of meaningful ownership and long-term attachment to the brand.
However, if you allow for an IKEA effect in your product, how can you underline its uniqueness in your messaging? Letting customers know what is uniquely theirs and no-one else's will enrich the creative process further and heighten perceived value.
Play with difficulty in task-based collections
Whether you have a set of complimentary products that can be collected, or a series of task-based badges that need to be unlocked to get a reward, consider restricting their supply and therefore adding in a little friction to the collecting process. Ensure not too scarce to disincentivise, but just enough to foster greater feelings of success.
Where can you explore scarce collections for especially-valued products or rewards, or to promote new product exploration?
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Scarcity
