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Flash Sale and Fake Urgency: Examining the Psychological and Ethical Impact of Artificial Scarcity in Online Retail

Nikhil Verma,

BBA Student, Amity Business School, Amity University Raipur

ABSTRACT

Online stores are using urgency signals more and more, like flash sales, countdown clocks, and alerts for low stock, to affect how people buy things. These strategies play on psychological ideas such as scarcity, fear of missing out (FOMO), and loss aversion to encourage quick purchases. This research looks into whether these strategies are real limits or just tricks, and how they impact consumer trust, feelings, and loyalty over time. By using a mixed-methods approach—a survey of 40 online shoppers and case studies of well-known brands like Amazon, Nike, and Starbucks—the study shows that while urgency signals can really boost sales, using fake scarcity too much can make consumers doubtful, regretful, and distrustful of brands. The recommendations focus on ethical design, being open about practices, and real scarcity to find a balance between effective marketing and respecting consumers. This study adds to the conversation about marketing strategies and consumer protection in online shopping.