Artificial scarcity drives consumers: experts
'Limited edition' products pique consumer interest
Last Updated: Friday, November 26, 2010 | 12:48 PM ET
The Associated Press
Whether it's a limited-time offer from a fast-food restaurant, or the hot-selling toy the manufacturer seems to not have made enough of — consumers are driven to buy when a product is scarce — even when it's an artificial scarcity, according to experts.
Santa shines the Neiman Marcus limited edition BMW Individual 7 Series Sedan during the unveiling of the the Neiman Marcus Christmas Book. Consumers are drawn to scarce limited edition products. (Donna McWilliam/Associated Press)The tactic is used so often in North American marketing that you might expect consumers are immune to it.
The Gap sells limited-edition jeans. Artists Robert Bateman is big on limited-edition prints. And in recent months, Frito-Lay has been offering "Cheesy Enchilada" Cheetos with the words "Limited Time Only!" printed on the bag. Could that availability be limited by anything other than their desire to grab our attention?
And yet, rather than ignoring the ads or balking at their false premise, consumers enthusiastically encourage the practice by jumping for limited-edition goodies.
'We move into that hoarding, greedy thing even though we know it's not true.'—Marie Gray, psychologist
How is it that people still get so excited, rather than annoyed, when they're manipulated by the threatened disappearance of something they want?
It's a mix of old instincts and modern challenges, according to psychologist Marie Gray, who teaches at Misericordia University in Dallas, Pa.
"Our nervous systems get activated," she says, "and we move into that hoarding, greedy thing even though we know it's not true."
Disney master of limited time releases
In announcing that the animated film Beauty and the Beast would be available on DVD beginning in October, a Disney website uses the phrase "Finally releasing from the Disney vault for a limited time."
Paris Hilton shows off one of the new watches of her Paris Hilton Limited Edition Watch Collection. Hilton's 18K white gold and diamond encrusted watches start at $100,000. (Stephen Chernin/Associated Press)Fans know the drill: When a movie emerges from the "vault," they whip out their credit cards to grab a copy before the company pulls it from store shelves again. It's received as an opportunity, rather than a marketing gimmick.
"There is an element of appealing to scarcity that always works in every human being," says Jayanthi Rajan, who teaches economics and business at Albright College in Reading, Pa.
Still, North Americans like nothing more than getting what they want when they want it. Will the day ever come when consumers put limits on their tolerance for "limited time only" goods?
Probably not, said Morris Shapero, who teaches and studies marketing and culture at Eckerd College in St. Petersburg, Fla.
"We live in the moment and we're a very futuristic society," he says. "We say, 'Give me what I want and I'll move on to the next thing."'
When it comes to our shopping habits, he says, "We don't hold grudges."
Share Tools
Top News Headlines
- Montreal protesters march in peaceful defiance
- The clanging of pots and pans sounded throughout Montreal's downtown core Saturday night and into early Sunday morning, as thousands of protesters marched on in peaceful — but loud — defiance of Bill 78. more »
- Quebec tornadoes cause millions in damage
- Environment Canada confirms that two tornadoes — one of which was classed as a moderate F-1 packing winds of up to 150 km/h — touched down near Montreal Friday night, causing millions of dollars in damage. more »
- Teen struck by lightning in Ottawa dies
- The victim of a Friday lightning strike during a storm in east Ottawa has died, CBC News has learned. more »
- Missing Winnipeg children found in Mexico
- Two Winnipeg children reported missing and possibly in Mexico have been found alive, according to unofficial reports from an agency that works to find missing people. more »
- Teen struck by lightning in Ottawa dies
- Missing Winnipeg children found in Mexico
- Quebec tornadoes cause millions in damage
- Woman's remains found in hockey bag on Cape Breton river
- Montreal protesters march in peaceful defiance
- Pope's butler arrested in Vatican leaks scandal
- Everest team unable to bring down Toronto woman's body
- WWE apologizes to Brazil over Canadian's flag stomp
- What a Greek euro exit could mean for Canada
