Telling consumers when availability is low has two effects: 1) the scarcity effect induces some customers to buy while they can for fear of missing out; and 2) seeing customers rushing to buy prompts others to follow suit, in what’s known as the herding effect. Product popularity is taken as a proxy for product value. Harnessing these effects can boost sales.
However, it can also backfire. … [ Read more ]
Content: Article | Authors: Eduard Calvo, Laura Wagner, Ruomeng Cui | Source: IESE Insight | Subject: Marketing / Sales