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The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics


Mar 17, 2023

Today, I am joined by Dr. Mindy Weinstein. Mindy is the founder and CEO of Market MindShift and was named one of the top women in digital marketing globally by her peers. She is also a global speaker, trainer, and digital marketing strategist who has worked with and trained companies of all sizes, including Facebook, The Weather Channel, Rosetta Stone, World Fuel Services, Investor’s Business Daily, HBO, Fandango, Telemundo, LL Bean, Cisco, Transamerica, and Sportsman’s Guide. Other digital marketing agencies come to Mindy to learn the latest trends, concepts, and methodologies. She teaches and leads marketing courses at Columbia Business School, The Wharton School at the University of Pennsylvania, Grand Canyon University, and the University of Denver. 

Getting introduced to Mindy was fascinating timing. A client asked if there was a book specifically about choosing the right type of scarcity tactics and how to apply them in her business. I let her know there wasn't a perfect fit and recommended What Your Customer Wants and Can't Tell You, as a great place to start.

Later that day, I got a LinkedIn message from Brian Ahearn, introducing me to Mindy, who had just published her book, The Power of Scarcity: Leveraging Urgency and Demand to Influence Customer Decisions. And, let me tell you...everyone in business needs to read this. It is so valuable and such a great resource for everyone regardless of industry. Listen in to get some amazing insights on applying scarcity in your business!

Show Notes:

  • [00:43] In today's conversation, I am joined by Dr. Mindy Weinstein. Mindy is the founder and CEO of Market Mindshift and was named one of the top women in digital marketing globally by her peers.
  • [02:02] She has a Ph.D. in general psychology with an emphasis on technology and is the author of The Power of Scarcity. 
  • [03:07] Everyone in business needs to read this book. It is so valuable and such a great resource for everyone regardless of industry. 
  • [04:57] Mindy shares about herself, her background, and the work she does. She has been a marketer for the last two decades. 
  • [06:07] As she was digging into all the factors, she realized that scarcity seemed to have the greatest power. It is also one of those factors that have been hardwired into our brain which dates back to our early ancestors. 
  • [08:39] “Obsession is a classic side effect of scarcity.” 
  • [09:24] Mindy shares how scarcity affected her family on their visit to Disney World.
  • [12:06] The Star Wars ride was in high demand and it was difficult to get on. When you are faced with something like that, it becomes urgent and an obsession for your brain. 
  • [14:52] Even though we know scarcity works, it can be really challenging to implement in business. 
  • [15:08] Scarcity is something you can implement and it always needs to be genuine. If it is authentic and something is truly scarce, why not communicate it? 
  • [15:42] As a small business a lot of times it is just your wording that makes a difference. Knowing how to word certain things makes a big difference. 
  • [17:22] One of the keys is not being afraid of running out of stock and instead making that an asset to you. Letting customers know items have been restocked triggers demand related scarcity. 
  • [19:31] Businesses can show the “best sellers” or “most popular” packages or most popular items that people buy. 
  • [20:28] There is a lot you can do from a business and small business standpoint that isn’t going to break the bank. 
  • [22:14] Luxury goods strive with supply related scarcity when there is only a certain amount of units. 
  • [24:47] When you are looking at the scarcity tactic you can still be a large retailer that is making a lot of money and having a lot of customers but be more focused and making sure that the things where you are advertising are going to be working for you instead of being a waste. 
  • [26:22] Time related scarcity is any kind of time restrictions like flash sales, coupons, or limited time offers or products. Demand related is where scarcity exists because of high demand. 
  • [28:30] Pricing isn’t about price. All the stuff that happens before the price matters. 
  • [29:10] If there is only so much of something to go around and we are looking at demand you feel like you are in competition. 
  • [31:18] Supply related scarcity could be a shortage or an intentional restriction on supply. Supply related scarcity speaks to people that have a need for uniqueness. 
  • [33:11] The final type of scarcity is limited edition which is any variation on the original.  
  • [35:44] Social media fuels so much of what we know and see about scarcity because words spread really quickly.
  • [38:38] “If you have to make an extra effort to obtain the item, that item has just become more attractive.”
  • [39:11] If we are told we can’t have something or it is not very simple for us to get it then we start to really think about it and want it more. 
  • [40:34] As we think about all these different types of scarcity, be careful about continuing to do the same thing over and over again. You want to mix it up so you don’t devalue your products or services. 
  • [42:20] Discounting deeply is going to be going against a lot of these scarcity principles. 
  • [44:36] Melina’s closing thoughts
  • [45:43] You never know who you are influencing and what value each moment can have on the world. Have a conversation and be generous with your time. Even a few thoughtful minutes could change someone including you for the better.

Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. 

I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation.

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