Retailers may create artificial scarcity of goods by hoarding the products or under producing them. When retailers hoard products, they buy up large quantities of a particular product and hold it back from the market, creating an artificial shortage. This can lead to an increase in demand and subsequently a higher price for the product.
Alternatively, retailers may intentionally under produce a product to create a scarcity, thereby increasing demand and price. By limiting the supply of a product, retailers can create a perception of rarity and exclusivity, making it more desirable to consumers who are willing to pay a premium price.
Processing and price hiking are not necessarily methods that retailers use to create artificial scarcity of goods. While processing can impact the availability of a product, it is not typically done intentionally to create scarcity. Price hiking is often a result of scarcity, rather than a method to create it.