What is it ?
The scarcity heuristic biases people, pressuring them into taking action. We place a higher value on objects that are scarce, and a lower value on those that are abundant. People associate the availability of a product with its quality.
How can I use it in my favour ?
Scarcity can be communicated using time or Quantity limitations.
A grocery store in Iowa had a 10% off promotion for Campbell’s soup. Some days, a sign next to the cans read “Limit of 12 Per Person”, while on other days there was no limit. Customers bought 7 cans on average when the limit was enforced, compared to an average of 3 cans on days with no limit.
Customers are more likely to take advantage of a purchase that has an “expiration date” because people simply hate losing out on something they could have had.