'FOMO': Beware of marketing traps, time, and money loss

But what exactly drives some individuals to go to such lengths just to own these products?

Deputy Dean (Student Affairs and Alumni) of the School of International Studies (SoIS) at Universiti Utara Malaysia, Dr Wan Nurisma Ayu Wan Ismail, believes that this behaviour is influenced by the Fear of Missing Out (FOMO) phenomenon.

She explained that FOMO is linked to an individual's anxiety about missing out on trends due to the influence of social media, which has been leveraged as an effective marketing strategy. This includes techniques that create an aura of exclusivity and 'special' status, which in turn generates excitement and increases consumer desire.

"In marketing, FOMO is used to create a sense of urgency among consumers, prompting them to act quickly so they don't miss out on owning a product or keeping up with the latest trends," she said.

Several FOMO marketing strategies are commonly used in promotional campaigns, including limited-time offers such as "Only 24 hours left!" and low-stock alerts like "Only three units remaining!", Wan Nurisma Ayu told Bernama recently.

Wan Nurisma Ayu, an expert in Marketing, Cross-Cultural Studies, and Consumer Behaviour, explained that these marketing techniques are further reinforced by social media influencers who promote products to their followers, creating a fear of missing out if they don't participate.

"Personal experiences shared by influencers make the product feel exclusive and encourage their followers to buy immediately out of fear that it will sell out. The use of limited-time discount codes also accelerates purchasing decisions," she said.

In many cases, she noted, businesses leverage marketing strategies that emphasise the 'desirability effect,' which fuels consumers' strong urge to own a product, sometimes to the extent of disregarding price and quality considerations.

However, she said such strategies do not violate marketing ethics as long as the information and promotions provided by sellers are accurate and genuine, do not exert undue psychological pressure, and do not excessively exploit or manipulate emotions and anxieties.

"However, consumers need to be educated and made aware of the importance of making prudent purchasing decisions," said Wan Nurisma Ayu.

Meanwhile, Dean of the Faculty of Human Ecology at Universiti Putra Malaysia (UPM), Prof Dr Mohamad Fazli Sabri, said FOMO also has financial consequences, often leading to impulsive purchases that can result in serious debt problems.

"The feeling of FOMO can drive reckless spending, potentially leading to long-term financial strain and even bankruptcy. Statistics from the Department of Insolvency show that 52.5 per cent of individuals declared bankrupt are from the younger generation, with uncontrolled spending being one of the contributing factors.

"Additionally, with payment options like Buy Now, Pay Later (BNPL) available, people should plan their purchases wisely. Save money first and buy only when financially capable, rather than relying on debt or emotional spending," said Mohamad Fazli, an expert in Consumer Finance.

He also noted that this culture impacts mental health, particularly for individuals who cannot afford trendy items, leading to feelings of low self-worth, stress, and social anxiety from being 'left out' of their peer groups simply for not owning something considered popular.

Mohamad Fazli advised society to shift their perspective on FOMO toward something more positive--using the success of others as motivation for self-improvement rather than merely competing to own material goods for social media display.

-- BERNAMA