Lionel Robbins in his book, “An Essay on the Nature and Significance of Economic Science” has given a definition for economics through the lens of scarcity. The definition is given by him is imperative even now. He defined,

“Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”.

                                                                                                                             – Lionel Robbins

Scarcity of any commodity creates demand for it and that demand leads to higher price ( based on demand curve).

Robert Cialdini in his famous book “Influence: The Psychology of Persuasion” has mentioned “Scarcity principle” can be used in persuasion. His article titled “The Science of Persuasion”  he explains how scarcity can influence people and how marketers use it influence consumers. This article explores about the use of scarcity in marketing context to persuade consumers. Before getting into the literature, let’s have a look at an example of scarcity effect in marketing.

Online platforms like Amazon, Ebay, Flipkart and many other websites mostly creates this scarcity effect to influence consumers to buy product. Take a look at the picture given below to get a good grasp of practical use of scarcity appeal. Continue reading