A key component of prospect theory is the idea of loss aversion – we hate losing more than we enjoy winning. In fact, studies suggest that the pain of losing is psychologically about twice as powerful as the pleasure of gaining. So, when choices are framed as potential losses, we tend t...
Offering incentives such as cash for switching (a common practice in traditional banks) Taking advantage of loss aversion. This is often the case with cable, internet, and phone bundles. Providers usually charge customers for switches to an upgraded package because they hope to persuade the custome...
This ad ran in many different magazines related to farming and farm life, and it proved to be very powerful due to its reliance on the concept of loss aversion. Loss aversion is a powerful motivator that beats its counterpart or the prospect of financial gain. Telling people they can become...
This ad ran in many different magazines related to farming and farm life, and it proved to be very powerful due to its reliance on the concept of loss aversion. Loss aversion is a powerful motivator that beats its counterpart or the prospect of financial gain. Telling people they can become...
For example, industries with exposure to construction exhibit higher betas (and cyclicality) as consumers are more likely to purchase new homes in periods of strong economicgrowth. But “essential” consumer products including everyday necessities such as personal hygiene products (e.g. soap, shampoo...
Well, people areunwilling to partwith what they own once they have fostered a sense ofattachment and belonging.And this attachment can happen within the first few seconds of placing that object in their hands! Loss Aversion In another study that looked at neural activity in the brain,Knutson ...
We’ll touch on this later in the psychology of landing page design (loss aversion) but, for now, let’s just break this formula down: Problem Present a known problem to your landing page visitor. Agitation Hammer home the severity and relevance of the problem. Solution Present your ...
Key takeaway: Reiterate the concept of loss aversion in your headlines to create irresistible media pieces and get users to convert. 63. “High School Student Loses Almost 600 Pounds And Now Devotes His Life To Helping Others Get Skinny!” ...
Key takeaway: Reiterate the concept of loss aversion in your headlines to create irresistible media pieces and get users to convert. 63. “High School Student Loses Almost 600 Pounds And Now Devotes His Life To Helping Others Get Skinny!” ...