How Scarcity marketing affects consumer behavior — Dr. Mindy Weinstein // Market MindShift

Show Notes

• 02:01
  What The Power Of Scarcity book is about

  The book focuses on the psychology behind scarcity and its effects on consumer decisions. It also provides information on how businesses can apply the power of scarcity in an ethical way.
• 03:52
  Why scarcity impacts consumer behavior

  The human brain responds to scarcity with urgency. So, when theres a restriction or shortage of products and services, urgency comes into play, and those products and services become more valuable.
• 07:35
  How marketers can avoid artificial scarcity

  Some companies intentionally communicate fake scarcity about certain products to increase demand. These techniques should be avoided and scarcity should be natural.
• 09:17
  Appropriately communicating scarcity to consumers

  In the event of supply-related scarcity, it's best to use an informative tone and let people know when it will become available. By informing them, you are able to build relationships with those customers.
• 11:46
  Demand scarcity vs supply scarcity

  When something is hard to get and supply can't keep up with the demand, that is demand-related scarcity. Supply-related scarcity occurs when something is produced or released in a limited quantity.
• 13:34
  Supply

  Players in the physical goods category can benefit from supply-related scarcity because of conspicuous consumption. It also works for B2B because of the appeal of belonging to an exclusive club or getting special attention.
• 14:44
  Marketing channels where scarcity can be communicated

  If youre using email marketing as a strategy, you can include “restock” in the subject line to indicate scarcity. For eCommerce and SaaS settings, indicating whats most popular or best sellers are examples of how we operationalize scarcity.
• 19:22
  How to incorporate scarcity into your marketing programs

  Marketers should start by understanding their buyer personas and whats driving their customers. Those insights will inform the messaging and dictate the way scarcity is conveyed to consumers.