The Psychology of Scarcity: Thomas Maletta Shares How FOMO Drives Sales and How to Use It Ethically

In a world buzzing with limited-time offers, flash sales, and countdown timers, have you ever stopped wondering why we must act fast? That uneasy feeling in your gut when you see "Only two left in stock!" isn’t just a coincidence — it's psychology at work. This is the power of scarcity, a concept deeply rooted in our cognitive processes. Today, we dive into how the fear of missing out (FOMO) drives sales and, more importantly, how businesses can use it effectively and ethically. To guide us through, we have insights from marketing expert Thomas Maletta, who’s mastered striking that delicate balance.

The Psychological Roots of Scarcity

At its core, scarcity is a principle based on a simple idea: We tend to value things that are rare or in short supply more highly. Psychologists point to evolutionary roots—our ancestors had to act swiftly when resources were limited or risk going without. This survival instinct lingers in modern brains, making us more impulsive when we perceive something as scarce.

Experts say when people believe an item or opportunity is slipping away, their brain activates the same stress response as it would for a physical threat. The emotional reaction often overrides rational thought, pushing them to take immediate action and making them susceptible to impulsive decisions driven by fear of loss.

Research supports all of these scarcity concepts. A famous study by Worchel, Lee, and Adewole (1975) revealed that people rated cookies in a nearly empty jar as more desirable than those in a full jar. The product didn’t change; only the perception of availability did, demonstrating how perceived limitedness directly influences perceived value.

How FOMO Fuels Consumer Behaviour

Enter FOMO — the fear of missing out. It’s a modern spin on scarcity, amplified by social media and real-time updates. FOMO preys on our desire to be included and experience what others enjoy. The pressure intensifies when someone sees a friend’s Instagram story featuring an exclusive event or a product selling out fast.

FOMO isn’t just about wanting something—it’s about not wanting to be left behind. Marketers tap into this by showcasing real-time social proof, such as '500 people are viewing this item now' or 'Last chance to grab tickets.' This creates a sense of community and urgency.

For businesses, leveraging FOMO can mean highlighting limited-time offers, showcasing testimonials, and using live data (like low-stock alerts) to spur action. However, the key, as Thomas Maletta emphasises, is to use these strategies responsibly.

Ethical Uses of Scarcity in Marketing

While scarcity can boost sales, it walks a fine line between motivating customers and manipulating them. Ethical marketing means harnessing these psychological triggers without resorting to deception.

Expert marketers like Tom insist that transparency is everything. If you claim a sale ends at midnight, it should end at midnight. False urgency damages trust and ultimately harms long-term relationships with customers.

Here are a few ethical ways to implement scarcity tactics:

1. Genuine Limited-Time Offers: Only use countdown timers or 'limited stock' messages if accurate. Artificial scarcity can backfire if customers catch on.
2. Exclusive Previews or Releases: Offer loyal customers early access to sales or products. This not only rewards existing customers but fosters a real sense of exclusivity.
3. Highlight Real-Time Demand: Use social proof authentically — "X people bought this in the last hour" works if the data is real. Fabricated claims can erode credibility.
4. Create a Sense of Membership: FOMO doesn’t always have to revolve around products. It can also be about belonging, such as inviting people to a waitlist, insider group, or subscriber-only event.
5. Educate and Empower: Frame your marketing around helping the customer make informed decisions. Instead of "Buy now or regret it!" try "Here’s why this offer is special and how it benefits you."

Finding the Balance: Long-Term Loyalty Over Short-Term Gains

Thomas Maletta stresses that the most effective use of scarcity builds urgency and trust. The goal isn’t to push for a one-time sale — it’s to create a customer who feels confident in their decision and returns for more. Ethical scarcity fuels both immediate action and long-term loyalty.

Brands that overuse or misuse FOMO often face backlash. Remember when certain fast-fashion companies faced criticism for misleading 'almost sold out' notices? Customers aren’t afraid to call out brands that cross the line.

Instead, businesses should view scarcity as a way to enhance their product’s value, not fabricate it. Genuine enthusiasm and transparent marketing build a loyal customer base far better than false urgency ever could.

Conclusion

The psychology of scarcity is a powerful tool, and FOMO is its most modern, potent form. The key is using these tactics responsibly — blending urgency with honesty. When done right, businesses can drive sales without sacrificing integrity, creating a sense of now-or-never and a reputation that keeps customers returning. So next time you set up a flash sale or highlight limited stock, ask yourself: am I building trust or just chasing a quick win? The answer will shape your campaign and your brand’s future.