Mindy Weinstein, Author at Branding Strategy Insider

4 Strategies For Building Brands With Scarcity

Lists of bestselling items, from books to cosmetics to music, have a strong influence on us because they signal popularity. When in doubt about what to buy, you will more than likely be drawn to the item that is mentioned to be a bestseller. This distinction helps us slip into the mindless decision-making mode because while bestsellers aren’t always scarce, they do communicate high demand and high sales and prove an effective strategy.

How Scarcity Wields Influence For Brands

Persuasion engages innate human responses. When used as an influence tactic, scarcity can change beliefs, attitudes, or behaviors due to actual or perceived pressure. Social psychologists have been especially interested in scarcity and influence because it can cause significant behavior changes and result in people making decisions they otherwise would not have made. Items have a greater appeal when their availability is limited or restricted.

The Brand Strategy Of Scarcity

In a 2017 study 6 participants were shown a promotional message that reflected a percentage off the price of a product. There were different variations of this message, some that showed the offer was for today only, for one week only, or had no expiration at all. While hooked up to an fMRI scanner, participants pressed a button if they wished to purchase the product they were presented with. Each time they chose to buy...

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