Episode 41 How Starbucks Made Pumpkin Spice
Latte a Cult Favorite with Scarcity
In this episode, we uncover how Starbucks turns the Pumpkin Spice Latte into a
cult favorite through the power of scarcity.
Episode Highlights
The Scarcity Effect
Seung Yun Lee's experiment demonstrated that marketers effectively use scarcity to increase desirability.
Habituation
Limited-time offers disrupt the process of habituation, ensuring that the sense of urgency and excitement remains fresh and compelling.
How nostalgia reduces price sensitivity
Dr. Jannine Lasaleta's behavioral science study shows that a consumer's wilingness to pay increases when nostalgia is used in a brand's marketing.
Resources & Useful Links
Looking to dive deeper on the scarcity effect or habituation? Explore these resources
to learn how behavioral science can boost your brand’s appeal and
why understanding actual consumer behavior is so crucial.
Keep Listening
Ep30 - Optimism Bias with Tali Sharot
How consumer behavior has the tendency to overestimate the likelihood of positive events and underestimate the likelihood of negative events
Ep31 - Costco: Loyalty Cards, Ski Trips, and the Sunk Cost Effect
How consumer behavior can be decided by loyalty programes and the theory of sunken cost
