Chapter 7 – Scarcity: The Rule of the Few
The scarcity principle is the idea “that opportunities seem more valuable when their availability is limited.” This principle can take hold even when it merely seems like there are no more products in stock. Cialdini gives an example where an employee tells a shopper that the product they are showing interest in had just been sold prior to their arrival. More eager now, the shopper asks if there are any more in the back. The employee says she does not think so but would check. Then she asks if it was, would they buy it. The shopper agrees, and when the employee returns with the product, many buy it, not wanting to go back on their commitment.
In addition to taking advantage of the idea that “things that are difficult to possess are typically better than those that are easy to possess,” the scarcity principle also causes “psychological reactance.” Psychological reactance is the notion that when something becomes scarce, “we lose freedoms; and we hate to lose the freedoms we already have.” As an example, the book discusses the “Romeo and Juliet effect.” A study has shown that the more parents attempt to intervene in their child’s relationships, the more intense the child’s relationship becomes.
Next, Cialdini shares a study that had half of the participants eat a cookie from a full jar and half eat a cookie from a jar containing two cookies. Rating the cookies on quality, the cookie from the two-cookie jar was rated higher. Additionally, the researchers gave a portion of the two-cookie participants a full jar of cookies and then replaced it with a two-cookie jar. The participants rated the cookies from this jar even higher. For an example, Cialdini refers to parents who grant privileges and then revoke them receive more backlash than if they had never granted the privileges in the first place.
Furthermore, the “cookie study” told one group of participants they were receiving less cookies because there was demand for them from another group. They told another group that they received less by mistake. The first group rated their cookies the highest out of all groups in the study. Using this technique, Cialdini says some realtors increase demand for their houses by telling cautious buyers that they have another buyer that is also interested and willing to pay cash. This “thought of losing out to a rival frequently turns a buyer from hesitant to zealous.”
Lastly, Cialdini advises on how to properly respond to the scarcity principle. He states that since “cognitive processes are suppressed by our emotional reaction to scarcity,” the first step is becoming aware of instances in which emotions have become heightened. After becoming aware, he proposes a test: if a product is desired because it is scarce (e.g., a rare piece of art to impress friends), she should accept the scarcity driven price. However, if the desire is to fulfill a function (e.g., to decorate a blank wall), she should not accept a scarcity driven price as its real value.
A few related quotes:
- When our freedom to have something is limited, the item becomes less available, and we experience an increased desire for it.
- Not only do we want the same item more when it is scarce, we want it most when we are in competition for it.
- Quite simply, we need to recall that the scarce cookies didn’t taste any better.
Andrew T. Daniel 