Question : Case Study:
XYZ Fashion introduces a "Limited Edition Collection" with exclusive designs. This creates a sense of urgency among customers. What psychological technique is used in this sales promotion?
Option 1: Scarcity
Option 2: Reciprocity
Option 3: Social Proof
Option 4: Authority
Correct Answer: Scarcity
Solution : The correct answer is (a) Scarcity
By introducing a "Limited Edition Collection" with exclusive designs, XYZ Fashion is creating a sense of urgency and implying that these designs are rare and won't be available for long. Scarcity is a psychological principle where people tend to assign higher value to things that are scarce or in limited supply, and it often prompts individuals to take action (such as making a purchase) to secure the item before it's no longer available.