The Psychology of Scarcity: Examining the Influence of FOMO, Perceived Urgency and Limited-Edition Design on Gen Z Consumer Purchase Decisions

Jovita Khurana, Raghu Raja Mehra

Abstract: Scarcity has moved from an economic condition to a design decision. Countdown timers, low-stock warnings, limited-edition collaborations and invite-only access are now deliberately engineered features of digital retail, and Generation Z encounters them continuously. This paper examines how such cues influence purchase decisions, and whether they operate through fear of missing out (FOMO), through perceived time urgency, or through both. Primary data were collected from 120 respondents aged 16 to 26 using a structured questionnaire combining five-point Likert items with scenario-based comparisons. Low-stock messaging emerged as the strongest single trigger, reported by 71.7 per cent of respondents as increasing the urge to buy, followed by countdown timers (65.0 per cent) and limited-edition collaborations (62.5 per cent). Mean purchase intention rose from 3.1 with no scarcity cue to 4.4 when cues were combined, but anticipated regret rose in parallel from 1.8 to 3.6- indicating that scarcity marketing increases conversion and dissatisfaction together. FOMO showed a stronger association with purchase intention (r = 0.61) than perceived urgency (r = 0.49), suggesting that the dominant mechanism is social rather than temporal. The paper argues that scarcity design shifts decision-making from deliberate evaluation to rapid reaction, and considers the ethical position of firms that engineer that shift deliberately. Figures are illustrative constructions prepared from the survey design described in Section 3.

Keywords: scarcity marketing; FOMO; perceived urgency; Generation Z; limited edition; impulse buying; consumer psychology; choice architecture; digital retail

How to Cite?: Jovita Khurana, Raghu Raja Mehra, "The Psychology of Scarcity: Examining the Influence of FOMO, Perceived Urgency and Limited-Edition Design on Gen Z Consumer Purchase Decisions", Volume 15 Issue 8, August 2026, International Journal of Science and Research (IJSR), Pages: 2103-2110, https://www.ijsr.net/getabstract.php?paperid=SR26825123947, DOI: https://dx.doi.org/10.21275/SR26825123947

Download Citation: APA | MLA | BibTeX | EndNote | RefMan