Consumers place a higher value on goods that are scarce than on goods that are abundant. Psychologists note that when a good or service is perceived to be scarce, people want it more. Consider how many times you’ve seen an advertisement stating something like this: limited time offer, limited quantities, while supplies last, liquidation sale, only a few items left in stock, etc.
The feigned scarcity causes a surge in the demand for the commodity. The thought that people want something they cannot have drives them to desire the object even more. In other words, if something is not scarce, then it is not desired or valued that much.
Marketers use the scarcity principle as a sales tactic to drive up demand and sales. The psychology behind the scarcity principle lies on social proof and commitment. Social proof is consistent with the belief that people judge a product as high quality if it is scarce—or if people appear to be buying it. On the principle of commitment, someone who has committed themselves to acquiring something will want it more if they find out they cannot have it.