
Nudge #8: The power of scarcity and why less is more
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Jul 29, 2019 Richard Shotton, a behavioural science expert and author of The Choice Factory, dives into the intriguing world of scarcity and its impact on consumer behavior. He reveals fascinating insights, like how limited choices lead to higher purchases, and why the last cookie in a jar tastes better. Richard discusses how scarcity messages can boost sales and shares historical examples, including King Frederick's potato strategy. Plus, he highlights how time limits and anchoring can alter spending habits, especially in the luxury market.
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Too Many Choices Reduce Purchases
- Sheena Iyengar's jam study showed fewer choices increase purchases and reduce paralysis.
- Presenting six options sold 30% vs 3% when 24 options were offered.
Scarcity Enhances Perceived Quality
- Stephen Warcher's cookie experiments found scarce jars made cookies taste better and worth more.
- Explaining the scarcity as "very popular" raised willingness to pay by ~43%.
Call Out Limited Stock Clearly
- Use scarcity cues like “last few” or “limited availability” to boost sales across product types.
- Highlight uniqueness or limited stock to raise perceived value even if features aren’t universally liked.








