Loss of Time, Money, and Self-Worth: The Pitfalls of ‘FOMO’
The Rise of Fear of Missing Out (FOMO)
Standing in long queues regardless of the weather, waiting for hours, even spending the night on the pavement in front of stores, just for the chance to purchase a newly launched product – this has become increasingly common in Malaysia. What drives some individuals to go to such lengths? Wan Nurisma Ayu Wan Ismail, a deputy dean at Universiti Utara Malaysia, believes this behavior is influenced by "fear of missing out" (FOMO).
The Impact of FOMO on Consumer Behavior
The phenomenon is linked to an individual’s anxiety over missing out on trends, largely thanks to the influence of social media. Companies leverage online platforms to create an aura of exclusivity and a "special" status surrounding their products, which 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.
Strategies That Reinforce FOMO
Strategies commonly used in promotional campaigns include limited-time offers – "only 24 hours left!" – and low-stock alerts like "only three units remaining!" Wan Nurisma explained. The expert in marketing, cross-cultural studies, and consumer behavior added that these techniques are further reinforced by influencers who promote products to their followers. "Experiences shared by influencers make the product feel exclusive, encouraging their followers to buy immediately out of fear it will sell out. The use of limited-time discount codes also accelerates purchasing decisions," she added.
The Desirability Effect
In many cases, businesses leverage marketing strategies that emphasize the "desirability effect", which fuels consumers’ urge to own a product, sometimes to the extent of disregarding price and quality. Such strategies, she noted, 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 trigger emotions and anxieties.
The Financial Consequences of FOMO
Mohamad Fazli Sabri, a dean at Universiti Putra Malaysia, said FOMO also has financial consequences owing to impulsive purchases that can result in serious debt problems. "FOMO can drive reckless spending, potentially leading to long-term financial strain, even bankruptcy. Statistics from the insolvency department show that 52.5% of bankrupt individuals are of the younger generation, with uncontrolled spending being one of the contributing factors."
The Impact on Mental Health
He also noted that this culture impacts mental health, particularly among those 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 "popular". Mohamad Fazli thus advises social media users to focus on something more positive, such as using the success of others as motivation for self-improvement, rather than competing to own material goods for social media glory.
Conclusion
In conclusion, FOMO can lead to a loss of time, money, and self-worth. It is essential to be aware of the strategies employed by businesses to encourage FOMO and to make informed purchasing decisions. It is also crucial to prioritize financial stability and to focus on personal growth rather than competing to own material goods.
FAQs
- What is FOMO?
FOMO stands for "fear of missing out". - How does FOMO impact consumer behavior?
FOMO influences consumer behavior by creating a sense of urgency and encouraging impulsive purchasing decisions. - What are some strategies used to promote FOMO?
Limited-time offers and low-stock alerts are common strategies used to promote FOMO. - What are the financial consequences of FOMO?
FOMO can lead to reckless spending, potentially resulting in long-term financial strain and even bankruptcy. - How can I avoid FOMO?
Prioritize financial stability, make informed purchasing decisions, and focus on personal growth rather than competing to own material goods.