Marketers often misapply psychological principles. During shortages of items like eggs, imposing a purchase limit frames the item as scarce. This triggers survival instincts and loss aversion, causing people to buy the maximum allowed amount even if they need less, thereby worsening the shortage.

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In a large-scale Facebook experiment for a chip deal, KFC Australia found the most effective slogan was not a creative tagline but a simple phrase invoking scarcity: "limited to four per customer." This demonstrates that basic psychological principles can be more persuasive and profitable than clever, brand-focused copywriting.

Shopping decisions are often a battle between brain systems. The primal limbic system, governing emotion, reacts instantly to sensory cues like a sugary display. This happens long before the rational cerebral cortex can process thoughts like 'budget' or 'health,' explaining why willpower often fails against our own biology in the aisles.

Marketers typically use scarcity by highlighting limited stock or time. An overlooked application is to frame the end of availability. A study found that telling people a movie would stop airing that weekend made them 36% more likely to go watch it, focusing on the impending loss of opportunity.

The success of 'false choice' buttons stems from a cognitive bias called the 'framing effect,' which leverages loss aversion. People react more strongly to potential losses and negative self-perceptions than to potential gains. The brain is hardwired to avoid feeling stupid, making the negatively framed 'no' option a powerful deterrent.

Instead of a generic '20% off' coupon, framing a promotion as pre-existing store credit (e.g., 'You have $21.63 in credit expiring soon') is more effective. This psychological trick makes customers feel they are losing something they already own, creating a powerful motivation to buy.

The principles influencing shoppers are not limited to retail; they are universal behavioral nudges. These same tactics are applied in diverse fields like public health (default organ donation), finance (apps gamifying saving), and even urban planning (painting eyes on bins to reduce littering), proving their broad applicability to human behavior.

Maximizing profits in a crisis, such as a hardware store hiking shovel prices during a blizzard, ignores the powerful economic force of fairness. While rational by traditional models, such actions cause public outrage that can inflict far more long-term brand damage than the short-term profits are worth.

When people feel their freedom is threatened by a direct command, they experience "reactance," a psychological pushback. P&G's directive "don't eat Tide Pods" triggered this, paradoxically increasing interest and dangerous behavior instead of curbing it.

Brands can strategically trigger Fear of Missing Out (FOMO) by imposing purchase limits, like 'limit 10 per customer'. Research shows this tactic is highly effective; shoppers will often buy, on average, 70% of the stated limit, even if they initially intended to buy far fewer items.

Modern advertising weaponizes fear to generate sales. By creating or amplifying insecurities about health, social status, or safety, companies manufacture a problem that their product can conveniently solve, contributing to a baseline level of societal anxiety for commercial gain.

The "2 Per Person" Limit During Shortages Actually Increases Hoarding | RiffOn