Scarcity as a Marketing Tool Part 3: Making Use of Limited Time

This final installment in our scarcity series explores how time limitations influence consumer behavior. We’ve previously covered the impact of limited supply and excess demand. Now, let’s dive into the impact of time-based scarcity.

Time-based scarcity occurs when consumers have a limited window of opportunity to acquire a product, regardless of levels of supply and demand. This creates urgency, which is a powerful force influencing purchasing decisions.

Examples of Time-Based Scarcity

• Seasonal Products: Girl Scout Cookies and Starbucks Pumpkin Spice Lattes are both products sold only during a specific time of year.
• Holiday-Specific Items: Valentine’s Day candy is a product that is not only sold during a specific period but is also best used during that period—it becomes a much worse gift on February 15.
• Irregularly Available Goods: McDonald’s generates buzz by introducing and withdrawing the McRib sandwich on an unpredictable schedule.
• Distribution Limits: The fragrance house Le Labo makes its “city exclusive” line widely available for only two months of the year. For the other ten months, each city exclusive is available only in a single retail location.¹
• Time-Limited Discounts: Restaurant happy hours or early bird specials are examples of this related concept, which usually serves to shift demand rather than generate it.

The Effects of Time-Based Scarcity

Time limits work by reducing how long consumers have to make a decision. This affects their behavior in a few predictable ways:

• Especially for prospective customers who have already been considering making a purchase, a time limit creates a critical period that requires decisiveness and encourages taking action.
• Time limits enhance the effects of the other elements of scarcity, limited supply and excess demand.
• Successfully acquiring a time-limited item is rewarding in part because it helps buyers see themselves as being competent consumers with good judgment.

Practical Tips for Using Time-Based Scarcity

1. Be clear and trustworthy: Communicate time limits honestly and accurately.
2. Create excitement: Use time limits to concentrate demand and heighten the impact of all three elements of scarcity.
3. Balance urgency with value: Too much urgency can lead to post-purchase regret, so don’t apply too much time pressure.

Conclusion

When thinking about scarcity in your marketing strategy, don’t overlook the role of time. When used thoughtfully and in alignment with your brand’s values, it can drive conversions, create excitement, and reward your most dedicated customers. With careful implementation, you can nudge your customers to take action while maintaining their trust and satisfaction.

As we’ve seen throughout this series, scarcity in all its forms can be a powerful marketing tool. However, we have only touched on the key concepts related to this topic. We hope you have learned some new ways to apply these concepts to create effective campaigns that resonate with your audience, and we encourage you to learn more. An excellent resource is the following paper, which goes deeper into many of the topics described here: Barton, Zlatevska, and Oppenwal (2022). Scarcity tactics in marketing: A meta-analysis of product scarcity effects on consumer purchase intentions. https://doi.org/10.1016/j.jretai.2022.06.003. (PDF link).