Fear of Missing Out or FOMO is the anxiety that we may be missing out on an experience that others find rewarding or valuable. It is a cognitive bias that the mind naturally creates. Due to this bias, people are prompted to do things they otherwise might have chosen not to do.
Flash sales are primary example of FOMO in action. Many companies like Xiomi , Apple and oneplus have leveraged this effect to great extent. While Apple is a seperate case study but Xiomi and one plus have similar startegies which is primary driven by Flash sales on Websites like Amazon.
Marketers use this cognitive bias in e-commerce by showing customers the buying behavior of others. For instance, on a website such as Booking.com, when you are looking at a particular hotel or service, you are likely to see how many others are looking at the same product or place.
The first paper on the Fear of Missing Out—FOMO was written by a marketing strategist named Dan Herman, later Author Patrick J. McGinnis coined the term FOMO in a article written in the magazine of Harvard Business School. It is estimated that around 70% of all adults in developed countries suffer from the FOMO feeling that something’s happening and they’re not a part of it or no one invited them when they are having fun. Social media is the primary reason for FOMO or fear of missing out.
This creates the impression that the particular hotel is not only popular, but you may also miss the chance to book a room there. This is a perfect example of FOMO or fear of missing out on being used to influence buyers’ decisions. The sense of urgency created by this unconscious fear is useful for marketers.
Found this interesting, learn a new term here. https://www.skillcamper.com/what-is-the-anchoring-bias.html/