MALAYSIA: In an age when social media dictates the latest trends, the fear of missing out (FOMO) has become a powerful force influencing consumer behaviour. From queuing for hours in front of stores to making impulsive purchases online, many are willing to go to great lengths to ensure they are not left behind. The rise of FOMO-driven spending is not just about acquiring products; it is about maintaining social status, fitting in, and feeling a sense of belonging.
According to Wan Nurisma Ayu Wan Ismail, a deputy dean at Universiti Utara Malaysia, this behaviour is deeply rooted in anxiety over missing out on trends, largely fuelled by social media. “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, as reported by Free Malaysia Today (FMT). This sense of urgency drives people to make hasty purchasing decisions, often without considering their financial situation.
How marketers exploit FOMO for profit
Companies are well aware of how FOMO affects consumer decisions and have mastered the art of using it to their advantage. Through limited-time offers, low-stock alerts, and exclusive pre-orders, brands create a sense of scarcity that pushes consumers to buy now rather than later.
“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 was quoted as saying by FMT. Social media influencers play a significant role in reinforcing this mindset. By sharing their experiences with products and offering special discount codes, they make items seem more desirable and exclusive.
“Experiences shared by influencers make the product feel exclusive, encouraging their followers to buy immediately out of fear it will sell out,” Wan Nurisma added. This cycle of promotion and peer influence turns shopping into a competitive activity, where being among the first to own a new product becomes a badge of status.
The financial consequences of FOMO-driven spending
While businesses benefit from FOMO marketing tactics, consumers often pay the price—literally. Reckless spending driven by FOMO can lead to serious financial difficulties, especially among younger individuals who may not yet have strong financial discipline.
Mohamad Fazli Sabri, a dean at Universiti Putra Malaysia, warned that “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.”
Payment schemes such as Buy Now, Pay Later (BNPL) further encourage impulsive purchases, making it easier for people to accumulate debt without immediate consequences. The impact extends beyond finances; many individuals experience stress and anxiety from the pressure to keep up with trends.
For those who cannot afford the latest must-have items, feelings of low self-worth and social exclusion can arise. “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 noted, as published by FMT.
Resisting the pressures of hype-driven spending
Breaking free from FOMO-driven spending requires conscious effort and financial discipline. Instead of making purchases based on social pressure, consumers can focus on their own needs, financial goals, and long-term well-being. Mohamad Fazli advises that people should “plan their purchases wisely: save money first and buy only when financially capable, rather than relying on debt or emotional spending.”
Another way to counter FOMO is by shifting focus away from material possessions and towards personal growth. Rather than viewing social media as a competition for who owns the most expensive or trendy items, individuals can use it as a source of motivation for self-improvement.
“Social media users should 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,” Mohamad Fazli suggested.
Ultimately, resisting the influence of FOMO requires a shift in mindset—valuing financial stability over fleeting trends, making informed purchasing decisions, and recognising that true fulfilment does not come from keeping up with the latest hype but from making choices that align with one’s long-term well-being.
Featured image by Freepik (for illustration purposes only)