The Allure Of Being Limited: Part 1/2

Ideas, Riffs And (Some) Noise On All Things Marketing. Branded

Quick Read: Value as a concept to a consumer has 2 key dimensions: perceived benefit and perceived cost (of a product). But the moment a third dimension called ‘availability’ is introduced, the equation becomes intriguing and interesting, especially when the former is limited – in reach or time.

Value is an interesting concept. It can be defined as  the consumer’s perceived benefit derived from a product in relation to its perceived cost, and can be represented by the equation:

Value = Benefit / Cost 

What generates value? Dial up the benefit and/or dial down the cost of your product for the consumer. Simple. Isn’t it? But that is conventional.

Let’s take the concept of Limited Availability. When something becomes limited in availability, the concept of value can become a bit unconventional and even compelling – almost as intriguing and compelling as the concept of turbulence is for physicists.

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