The Psychology of Urgency: How to Create a “Must-Have” Effect

Marketing is about making people believe they want something and selling it to them at a profit. A crucial tool that marketers use is creating a must-have effect on their products to drive immediate sales and increase profit. This psychology is what we will be examining to understand how it works and how to use it.

The Science of Urgency & FOMO

Human beings hate regret; we hate missing out on things. Additionally, this is exacerbated by the fact that we are social beings dependent on others for approval. An American study by OnePoll found that 69% of people have experienced Fear of Missing Out (FOMO); this implies more than half of people would rather follow the train than walk its tracks. So, it is that sense of urgency that makes people damn consequences just to be on. Social influences like friends and peers also play a major role. When I was younger, everyone wanted an All-Star Converse or Vans sneakers, despite their poor durability—making parents discouraged. It was a must-have. 

This psychology affects how we perceive and react to scarcity and loss aversion. Marketers leverage these to drive consumer action. Let’s see some of these perceptions and their effects.

Scarcity (FOMO)

When a product is rare or classified as limited, people immediately assign a certain higher value to it. They believe if it is rare, it is exclusive, not meant for everybody, and they develop a mysterious higher sense of belonging or achievement when they obtain those things. Moreover, a 2024 study on perceived scarcity found that consumers often interpret limited availability as a sign of exclusivity. Luxury brands like Rolls Royce and Rolex are known to bank on this. 

Social Proof & Herd Mentality

Humans are not just social beings but also data-driven. They believe that if the majority chooses a product, it must be because of its value. So despite its price or other inconveniences, so long as the majority interest persists, so will theirs. One of the best examples of this was the debut Apple iPhone; despite heavy criticism from experts, the phone marketing rested on the majority opinion, which was massively in their favor. The long lines at the stores created a bandwagon effect as more and more were attracted by how excited people were.

Loss Aversion (The Pain of Missing Out > The Joy of Gaining)

Psychologists Daniel Kahneman and Amos Tversky proved in their 1979 work that people fear losses twice as much as they do gains. People fear missing out more than they desire to gain something new. They believe prevention is better than cure. E-commerce companies like Amazon use this strongly in their marketing to trigger immediate purchases and avoid regret.

Instant Gratification 

The urge to satisfy a craving, often feeling irresistible. The brain releases dopamine (the pleasure chemical) when we acquire something we want. Flash sales like Black Fridays and others do this well by utilizing people’s cravings and urge to get new things. In recent years, iPhone branding has featured this too. Where customers are lured in by the feeling of just having a new device—something ‘fresh’ 

How to Create Urgency in Marketing

Time-Sensitive Offers

These are very common—I mean literally everywhere. They are used to motivate the consumer to make immediate purchases. You can make use of time-bound discounts to create a rush and raise profit quickly. E-commerce giants Amazon, Temu, Jumia, and others excel in this. 

Scarcity & Exclusivity

Creating scarcity requires a high level of quality in presentation. You need to position your brand and product as not just a luxury but a rare one; as such, its scarcity is deemed based on exclusivity. It must become a thing to boast of and that consumers perceive as defining class. 

Social Proof & Real-Time Demand Signals

This always works. Showing customers how people are reacting to your product gives you authority, calls respect, and defines social standards. It implies the consumer doesn’t need to be concerned about being the first to try it (that works for exclusivity). Try showing live purchases and testimonials. Product review, according to research, can raise the conversion rate by 270%. For more on marketing, read. 

Pitfalls to Avoid

There are dangers to overuse of urgency, as people have been found to develop a mental illness due to anxiety and depression from FOMO or urgency. The new generation breeds the herd phenomenon heavily; as such, ethical and proper use of marketing must be observed to prevent severe repercussions for consumers.