Social Status and Zero-Sum Branding: Why Luxury Thrives on Exclusion | Behavioral Economics in Marketing Podcast | Season 10 - In Review

Why do consumers pay six figures for a handbag they’ll rarely use — or line up overnight for a hoodie they might never wear? The answer lies in status, scarcity, and the zero-sum game of exclusivity.

In this episode of Behavioral Economics in Marketing, we explore how zero-sum branding drives desire by making status a competition. Using real-world examples from Hermès to Supreme, we unpack how luxury brands use scarcity, gatekeeping, and social comparison to increase their perceived value — not by what they offer, but by what they withhold. We’ll explore the psychology behind why exclusion works, the power of signaling theory and social proof, and how marketers can ethically apply these principles to craft irresistible brand experiences.

If you’re building a brand that trades in aspiration, identity, or prestige — this episode is your blueprint.

Keywords: luxury branding, zero-sum marketing, scarcity marketing, social status, exclusivity, behavioral economics, Hermès, Supreme, signaling theory, social comparison, artificial scarcity, brand strategy

Behavioral Economics in Marketing Podcast | Understanding how we as humans make decisions is an important part of marketing. Behavioral economics is the study of decision-making and can give keen insight into buyer behavior and help to shape your marketing mix. Marketers can tap into Behavioral Economics to create environments that nudge people towards their products and services, to conduct better market research and analyze their marketing mix.

Sandra Thomas-Comenole | Host | Marketing professional with over 15 years of experience leading marketing and sales teams and a rigorously quantitative Master’s degree in economics from Rensselaer Polytechnic Institute.