Scarcity appeals within in-store promotional signage

Impulsive buying amongst young adults in the Maltese fashion industry

Kaya Callus

In today’s highly competitive retail environment, businesses are constantly seeking innovative ways to influence consumer behaviour and boost sales. One of the most effective yet often underestimated strategies is the use of scarcity appeals—marketing tactics that create a sense of urgency through limited availability. My research explores how scarcity-driven promotional signage affects consumer purchasing decisions, particularly through the lens of Fear of Missing Out (FoMO) and impulsive buying behaviour.

Why Scarcity Appeals Matter in Business

We’ve all encountered scarcity marketing in action—“Only 3 items left!” or “Limited-time offer!” These messages tap into our innate psychological tendencies, making us more likely to make quick, unplanned purchasing decisions. My study set out to determine just how effective these tactics are in influencing consumer behaviour and whether FoMO plays a critical role in the process.

Key findings from my research

Through survey-based research and statistical analysis, I discovered three major insights that are valuable for retailers and business leaders:

1. Scarcity appeals drive consumer action: When consumers see messages indicating limited availability, they are significantly more likely to make a purchase. The urgency created by scarcity appeals triggers an instinctive reaction — pushing customers toward immediate decision-making.

2. FoMO magnifies the effect: My research found that FoMO acts as a psychological bridge between scarcity appeals and impulsive buying behavior. People who experience high levels of FoMO are particularly susceptible to scarcity messaging, as they fear missing out on an opportunity.

3. Impulsive buying increases under scarcity conditions:  When scarcity appeals and FoMO are combined, impulse purchases spike. Consumers are more likely to buy without prior intention when they believe that a product may no longer be available in the future.

These findings have powerful implications for businesses looking to refine their marketing strategies and improve sales performance.

Practical applications for businesses

Understanding the psychological drivers behind consumer decisions allows businesses to craft effective marketing campaigns. The following are some actionable ways how companies can leverage my research:

1. Strategic use of scarcity messaging: Rather than overusing scarcity claims, businesses should apply scarcity appeals selectively to maintain credibility. For example, exclusive product launches or flash sales can create genuine urgency that encourages conversions.

2. Targeting the right consumer segments: Consumers with high levels of FoMO, particularly younger demographics active on social media, are more responsive to scarcity-driven marketing. Brands can enhance engagement by integrating scarcity tactics into online promotions and influencer collaborations.

3. Creating a balanced marketing approach: While scarcity tactics can boost short-term sales, overuse can erode consumer trust. Businesses should balance urgency with transparency, ensuring that scarcity claims are authentic and align with customer expectations.

Final remarks

My research confirms that scarcity appeals are more than just a marketing gimmick — they are a powerful tool that, when used effectively, can significantly influence consumer purchasing behaviour. By leveraging these insights, business leaders can create compelling marketing strategies that drive sales while fostering long-term customer loyalty.

In an era where consumer attention is decreasing and competition is fierce, understanding the psychological triggers behind buying decisions can make all the difference. By integrating strategic scarcity marketing into their business models, companies can tap into a proven method for boosting engagement and conversions.

Kaya Callus is a Digital Marketing Executive at Noċemuskata and received a Master of Science in Strategic Management and Digital Marketing from the Faculty of Economics, Management, and Accountancy at the University of Malta.