The dynamic perspective of consumerism has been evolving since the time man could think, from cavemen foraging for food and exchanging their finds to the modern systems of using a fiat currency as a medium of exchange. We, the business community, must explore the changing dynamics of consumer behaviour more closely, as now, with changing definitions of fulfilment, in a rapidly changing society, it is making marketers face more roadblocks in their path to communicating with the consumer effectively, wherein the biggest challenge is evolving consumer rationality.
Evolving Consumer Rationality is a dynamic shift in how consumers evaluate alternatives, make choices, and define value, reflecting evolving preferences, cognitive processes, and contextual influences rather than assuming stable, purely utility-maximizing behaviour .It has always been a controversial concept in the debate between economics, sociology and psychology and is well established now that critical consumption choices are not immune to cognitive biases and, therefore, it’s time of changing dynamics for marketers. And this different consumer rationality is a marketer’s delight. The consumer is so much under the influence of FOMO that she refuses to control her impulses, compulsively filling online and offline shopping carts with items she doesn’t need, but for fear of missing out, and sometimes compelled by an even more intense form of FOMO(fear of missing out)- Scarcity Effect , i.e.., a psychological phenomenon whereby consumers assign greater value to products or opportunities that appear scarce, leading to increased desire, urgency, and likelihood of purchase. It created through a limited-time deal, shades of exclusivity and limited products trend.
Tapping into changing ways of consumers, the fear of exclusion, and FOMO have emerged as strong factors in understanding modern consumer behaviour, which have direct implications for marketers. Research identifies multiple factors contributing to the emergence and intensification of FOMO in consumer contexts. One of them is social media usage, which is emerging as a primary antecedent, with increased platform engagement correlating with heightened FOMO levels. Social media platforms function as primary catalysts for FOMO development and activation. The design features of social platforms—infinite scrolling, algorithmic content curation, and notification systems—create environmental conditions that intensify FOMO. Another way to define the correlation between FOMO and social media, and more over the internet, would be that each consumer now has a dedicated guerrilla marketer constantly giving them solicited or unsolicited suggestions (influencers and pop-up ads) Social media influencers emerge as critical actors in FOMO activation their aura in digital markets sets up the FOMO. Influencer marketing operates through multiple pathways to activate FOMO: influencers model product use and trend participation, create perceptions of exclusivity, and facilitate social proof mechanisms. Research demonstrates that influencer credibility, particularly trustworthiness and expertise dimensions, stimulates FOMO among consumers. The parasocial relationships formed between consumers and influencers intensify FOMO’s psychological impact, as consumers fear missing not only products but also continued connection with favoured influencers
There is one specific marketing activation, where FOMO has been used very effectively – political marketing. Leaders, through their political discourse, work on building a massive FOMO. The pressure to choose a particular leader, vote or voice opinions on crucial issues creates a “FOMO on voting,” making citizens feel they’ll miss their chance to impact change that finally translates to votes.
So, here’s a shift in consumer dynamics that affects consumer action. Marketers, when they decide to deal with this, must do it very carefully, as they will be playing with consumer confidence.
Here’s wishing all the luck to my fellow marketing enthusiasts.
(Views are personal)
