Unlocking the Power of Scarcity: How Service Firms Can Drive Demand
Scarcity strategies are commonly used in the service industry to signal high quality and value, but they don't always work as intended. This chapter discusses when and how scarcity strategies can be effectively used in different service contexts. It classifies different types of scarcity strategies and explains the science behind their positive and negative effects. Individual differences and contextual factors can influence how effective these strategies are. Challenges like managing customer expectations and avoiding overuse of services are also addressed, with strategies for improvement and managing demand and capacity discussed.