The findings of a research conducted at Stanford University Graduate School of Business suggests that denying people access to a product will make them desire it more and work harder to get it—but will also make them less likely to keep it.

The boost to value comes from knowing we devoted extra effort to acquiring it, but it also has a negative self concept impact because we did not succeed on the first try. Desire and liking are independent from each other and also interact in strange ways. The more we want something, the less we’ll actually like it. It’s a lusting/loathing thing. The lusting/loathing effects were more intense with people who were less emotional, as measured on standard scales. “Emotional” people did not show the effect as strongly.

The results of this research make it clear that marketers should be cautious about using a strategic shortage to generate demand. It will increase demand right now but can have other costs. It will have implications for other products in your brand, repeat purchases, and loyalty. It comes down to what the goal of the company is. If it’s to make quarterly numbers, denying access may be a useful tool. It could be that marketers know what they’re doing and want those short-term gains; but it’s not a healthy long-term strategy.

Source: Harvard Business Review
Uzma Khan is an assistant professor of marketing at Stanford University’s Graduate School of Business