Loss aversion

The 15 psychological studies that help explain how your audience acts on social media and how to get the most out of the way you share with them.

Loss aversion is a cognitive bias that suggests that for individuals the pain of losing is psychologically twice as powerful as the pleasure of gaining.

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It is often used by marketers to influence consumer decisions. 1. Free Shipping: Many retailers offer free shipping as a way to entice customers to make a purchase. Customers are less likely focus on the cost of the item due to the perceived loss of not taking advantage of the free shipping. 2. Discounts: By offering a discount, customers are more likely to purchase the item due to the perceived loss of not taking advantage of the discount.

Loss aversion teaches us that if we want to convince someone of something, we shouldn't focus on the advantages. Rather highlight how it will help them avoid the disadvantages.

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Advertisers have a toolbox of psychological strategies that they use to reel viewers in. You may not even realize that you're affected by it... but you are. Things like scarcity can help to send people running for the year's supply of toilet paper that they don't, while anchoring can make you think something is a way better deal than it actually is. Free trial periods? That would be loss aversion. #psychology #advertising #marketing #cognitivebias

In theory, companies create value for stakeholders by making risky investments. In practice, however, managers in large corporations routinely quash risky ideas in favor of marginal improvements, cost-cutting, and “safe” investments. Why are managers in large, hierarchical organizations so risk-averse? Corporate incentives and control processes actively discourage managers from taking risks. Whereas CEOs consider each investment in the context of a greater portfolio, managers essentially bet…

Food aversion in pregnancy is very common. You might not feel like eating at all or find the smells of certain foods extremely unpleasant. https://garypryor.net/dealing-with-loss-of-appetite-in-pregnancy-by-gary-pryor/

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It’s often more tempting to avoid a loss than pursue a gain. But sometimes avoiding risk is the biggest risk of all. Bob Proctor explains why…

Understand prospect theory and how it impacts decision-making. Explore the psychology of loss aversion and gain satisfaction in decisions.

That’s why I gave my bathroom scale access to my credit card

🚀 MARKETING MAGIC! 🚀 Unlock the secrets to enticing your customers with powerful offers! 💡✨ 💥 Use the Decoy Effect to make your deals irresistible. 🤝 Tap into Reciprocity to encourage purchases. 🛒 Leverage the Anchoring Effect for better value perception. ⏳ Create Scarcity to drive urgency. 📦 Highlight Loss Aversion to make your offers feel essential. 💸 Utilize Price Anchoring to showcase savings! Ready to boost your sales game? Let’s get started! 💪 👉 Comment below with your…

Marketing Psychology on Instagram: "Loss aversion is a powerful principle when applied with intent. Find the benefit that people without your product or service are not getting, and use that to market. • • As promised, here’s a video to explain loss aversion as a marketing technique. Drop a like if you find this useful, and share your thoughts in the comment section. • • Follow @marketing.psychology for more contents like this. #lossaversion #businessman #businessstrategy…

Why do we cling so tightly to things once we own them? Learn about the bias of loss aversion. We all have it. But we don't have to live with it.

Why does a dropped $10 sting more than finding $5? Kahneman explains "loss aversion," our irrational fear of loss. This Kahneman classic sheds light on why we're wired to overreact to losses. Share this to raise awareness about this cognitive bias and its impact on our everyday decisions, from finance to relationships. #finance #decisionmaking #investing #gyaan #gyaanbatna #quotes #learning #wisdom #knowledge #growth #psychology #facts

Loss aversion is a bias, according to psychologists, where people attribute a stronger psychological weight to losses than to gains. Some psychological studies show that people place more weight on a loss, compared to a gain of the same size. This is labeled loss aversion. Constructive Paranoia Polymath Jared Diamond, in his book, The World … Loss Aversion Read More » The post Loss Aversion appeared first on FourWeekMBA.

Losing money hurts so much more than the thrill of getting it. Why is that?