The Effects of ‘Fear of Missing Out’ (FOMO) in Flash Sale Business Models: Strategy or Manipulation?

Abstract

Fear of Missing Out (FOMO) is a psychological phenomenon that has been widely adopted in flash
sale business models to create a sense of urgency and social pressure. This study used a qualitative approach
with semi-structured interviews with consumers who frequently participate in flash sales and digital marketing
professionals. Data was collected through interviews, online ethnography, and content analysis of flash sale
advertisements. Thematic analysis was used to identify patterns in consumer behavior, emotional responses, and
ethical considerations. The findings showed that FOMO-driven flash sales increase impulse buying but also lead
to buyer's remorse and anxiety. Marketing professionals are aware of the ethical tension between leveraging
psychological triggers and maintaining consumer trust. Consumers often experience psychological pressure due
to scarcity cues, leading to purchasing decisions based on perceived urgency rather than necessity. Additionally,
the study highlights a thin line between marketing strategy and consumer manipulation, particularly in cases
where artificial scarcity or misleading promotions are used. The discussion emphasizes that while FOMO-based
flash sales are highly effective in short-term revenue generation, they may harm long-term consumer trust if
perceived as deceptive. Ethical concerns regarding stress-inducing marketing tactics call for greater transparency
in digital marketing. Future research should explore quantitative measures of consumer spending behavior and
cross-cultural perspectives on FOMO marketing.