THE PSYCHOLOGY OF FOMO AND SCARCITY: HOW LIMITED-EDITION DROPS AND SOCIAL MEDIA DRIVE CONSUMER ENGAGEMENT

Abstract

This project analyses the impact of psychological triggers like scarcity, artificial urgency and drop culture in the purchasing behavior of new generations. Under the theoretical framework of the scarcity principle of Cialdini, the psychological reactance and the Elaboration Likelihood model, the paper analyses how social media platforms like Tik Tok and Instagram act as algorithmic echo chambers that reduce the rational deliberation and increase impulsive purchases driven by FOMO (Fear of Missing Out). Through a qualitative case study of Stanley¿s brand and its strategic transformation from 2019 to 2022, the effectiveness of limited edition launches, influencer marketing and UGC content is evaluated. Finally a loyalty hybrid model is proposed, concluding that if peripheral emotional stimuli provoke immediate conversion, long term loyalty depends on the post purchase transition to the central route, linked to the actual quality of the product.