Law of Scarcity

The Law of Scarcity is stated within the book, “that the more scarce an item becomes, the more the item increases in value, and the greater the urge is to own it. Scarcity drives people to action, making us act quickly for fear of missing out on an opportunity.” In my own words, it is when there is a low quantity of an item that is projected to sell fast, there is more of an urge or emphasis to acquire it right away. I think this law is indeed effective because if there is a product that someone wants to buy but is at a small quantity, they may be pressured into getting it right away without waiting because that product may be gone or the deal may go away.

My first example of the law of scarcity is Black Friday shopping. During Black Friday, many shoppers have quick triggers when it comes to buying products because the quantity is small and the discount will only be there for that day. It is not a time to think over the purchase and hope that if you leave it, it’ll still be there later for purchase.

My next example is this store Billiards in my hometown of Pewaukee. This store had many entertainment couches, tables, and overall a lot of nice things to help fill out an apartment or house. For a while they were running well and then they had a going out of business sign and everything must go banner across their store. Now they actually had this banner taken up and down a few times before officially going out of business. By having the going out of business sign and everything must go banner, it shows customer that their quantity items are beginning to decrease at a discounted price and that they should act soon before something that they may want is gone.

My last example is when I tried getting an apartment with some friends for next year. For next year, myself and others wanted to live in Coventry. There were only a few openings left so we had an urgency to act quickly before someone else gained interested and would begin leasing. We were going to sign it but due to poor communication and not having enough people, the idea of living as a group in Coventry faded.

Today, I can be seen continuing to be effect by this law whenever there are sales or a limited quantity of a product being present. In addition, I will try and find a way to incorporate this law into my workplace to potentially drive in more sales and to not leave clients empty handed when leaving my store.

Law of Social Validation

The Law of Social Validation is stated in the book as “recognizes and builds on our innate desire to be part of the group or part of the majority and that we tend to change our perceptions, opinions, and behaviors in ways that are consistent with group norms.” In my own words, it is changing our outcome on different situations based on group actions and perceptions. This law is effective many times and can be seen whenever an individual enters a group setting.

My first example can be seen at many sporting events, specifically baseball games. When I typically go to baseball games, I go in with the feeling of relaxing and with my type of personality, I don’t engage much into the game atmosphere. If people begin to all of a sudden do the wave and when it approaches me, I change my perception and try fitting in with the crowd by doing the wave as well.

My next example is social validation at work. Just recently, I went on a date with Madison to the Cheesecake Factory and upon arrival, there were many open sections to sit within the inside of the restaurant. When taken to our area to eat, we went past the inside section and we sat in a booth outside the restaurant next to a window. Sitting near the window, people will be able to look through the window at what we are doing and get a feel for what the atmosphere is like in the restaurant and they may stop in.

My last example is social validation and marketing which I may use time and time when helping pick our tuxedo styles. At work, some clients may not know what is “in” as far as clothing for prom or what sorts of looks are appropriate for weddings. By using social proof and telling clients what typically normal people have looked like or what sort of tuxedos are a hot trend is enough to get them to listen to me. With social validation, clients don’t need physical proof. “Perceiving that a product is popular is often all consumers need to go out and purchase it.”

Today, I will continue to be effected by this law whenever I go to a sporting event with people. Chances are that when someone cheers about something, myself and others will join together because it is the group norm.

 

Law of Contrast

The Law of Contrast as stated within the book is explained when persuaders “explain how we are affected when we are introduced to two different alternatives or options in succession.” In my own words, it is when we are faced with different scenarios, how people react and are affected by those different situations. Throughout life, I have used the ability of contrast many times when dealing in a work setting and have also been a victim of contrast when I am shopping. Overall, the law of contrast can be located in various situations and it can be an effective tool when persuading others. Throughout the semester, I will continue to use this law more in the work setting. When working with clients and I am discussing something, I will downplay things a tad until they see the final price for their product which I hope will bring satisfaction to them.

My first example of contrast is seen in school but specifically my Consumer Economics/Personal Finance class. Everyday coming into class, I have the mindset that class will be boring and I always come in with a bad mood because the class is typically boring to sit through. However, as class begins, my professor may start class off by saying class will be short today (about 30 minutes). By stating class will be shorter, it changes my reaction of class and gets me excited and I tend to pay attention more in class.

When going shopping for different foods such as packaged chip bags, I always try to make sure what I buy is worth the purchase. When buying a large package bag for a good price, I always feel great and think I got a good buy. However, when I go home and open the bag of chips, there is a lot of empty air space. Having lots of empty air space changes my mood from happy to angry because previously I had thought I made a good purchase of buying a full bag rather than now about a half a bag. Many times companies will put their products in big packaging but the product quantity doesn’t match the packaging.

My last example is when I am at work, I will usually list a price of a packaged tuxedo a little bit higher than the initial cost. Once I have helped the client pick out their tuxedo outfit, and have entered the information into the computer and enter in any coupons, the final price will usually come out less than the initial quote I gave them from before. When hearing the news that the cost is lower than what I had initially told them, this gives the client the idea that they are getting a better deal and they will be excited to pay less money.

Today, I tend to use the law of contrast when shopping. When shopping, I will typically look at an item of two different brand and contrast the positives and negatives of each in order to make my final decision of purchase.