“A hungry man can’t see right or wrong. He just sees food,” Pearl S. Buck once said. While Buck might have said the statement with a very direct intention, the metaphorical roots of this statement reaches all – even digital marketing. Lo and behold – we have hunger marketing (also known as scarcity marketing), a technique where brands create a sense of false urgency or hunger for their products in order to tempt consumers into buying in a short period. These temptations often come in the form of ‘Limited Period Offer’, ‘limited pieces left’, ‘sale like never before’, etc. “While it effectively taps into human instincts for urgency and exclusivity, overuse can lead to feelings of manipulation or anxiety among consumers. The current challenge is to strike the right balance: creating a sense of urgency while ensuring that the marketing aligns with genuine value,” Jay Rathod, founder and CEO, Koffeetech Communications, told BrandWagon Online.
As we keep reading how every dark cloud has a silver lining, the converse of this too is true. At its worst, scarcity marketing can manipulate consumer behaviour through deceptive tactics, leading to financial harm, distrust, and even legal repercussions.
Stirring the pot too soon
A common malpractice in scarcity marketing is the fabrication of urgency, such as falsely labelling products as “low in stock” or using countdown timers that reset indefinitely. Experts opine that these strategies often exploit consumers’ fear of missing out or FOMO, compelling them to commit impulsive purchases without appropriate consideration or research. A HubSpot survey validated this claim by stating that 60% consumers act on a purchase because they fear missing out. “ a survey by Label Insight found that 94% of consumers are more likely to remain loyal to a brand that offers full transparency. Instead of using fake countdowns or overused “last chance” tactics, we ensure the scarcity is genuine and supported by facts. Showing live inventory updates or sharing customer testimonials makes campaigns feel credible and less like a sales gimmick,” Sahaan Suman K, founder, Bubble Network, commented.
The see-saw of finance and psychology
Deceptive scarcity tactics can lead to significant financial consequences for consumers. Impulse purchases driven by false scarcity often result in buyer’s remorse, as individuals regret spending on items they didn’t need or were misled into purchasing. This dissatisfaction can have broader implications for brand loyalty. Furthermore, 59% of customers will stop buying from a company after multiple bad experiences, and 17% after just one, revealed PwC. “. According to Edelman’s Trust Barometer, 81% of consumers say trust is a key factor in their purchasing decisions. Overusing FOMO or creating fake urgency risks eroding that trust. Instead, we encourage clients to use FOMO sparingly and only when it’s authentic,” Suman added.
The psychological toll is equally concerning. Scarcity marketing can provoke stress and feelings of inadequacy among consumers unable to secure ‘limited’ goods. This is particularly problematic in high-demand markets like concert tickets, where bots and scalpers often monopolise availability, leading to inflated resale prices and consumer disenfranchisement.
Who is to blame?
The responsibility for ethical scarcity marketing lies with both marketers and platforms. Brands must balance urgency with honesty, ensuring that claims are verifiable and not exaggerated. Platforms like Amazon and eBay, which host third-party sellers, also have a role to play in enforcing policies against manipulative practices. “AI and predictive analytics play a crucial role in optimising the timing and frequency of scarcity campaigns, helping to avoid consumer fatigue. By analysing consumer behaviour patterns, AI can identify the most effective moments to launch scarcity campaigns, ensuring they resonate without overwhelming customers,” Rathod commented. Predictive analytics allows marketers to gauge when urgency feels organic rather than forced, leading to more authentic and effective engagements. Furthermore, AI enables precise audience targeting, ensuring that the right messages reach the right consumers at the right times, ultimately enhancing the success of campaigns while minimising the risk of consumer fatigue.
The ethical dilemma in scarcity marketing lies in balancing the creation of urgency with honesty. While urgency can drive purchases, tactics like exaggerating low stock or using false countdowns risk manipulating consumers and eroding trust. “Scarcity works best when paired with a great experience. A study by Bain & Company found that increasing customer retention by just five percent can boost profits by 25-95%. To ensure long-term loyalty, we follow up with thank-you emails, early access to future products, or loyalty perks. It’s about showing customers they made the right choice and creating relationships that last. When people feel valued and not rushed, they’re more likely to return,” Suman commented. Marketers must weigh short-term gains against long-term brand reputations, ensuring their strategies respect consumer intelligence and remain transparent.