What you will learn
Discover how “loss aversion” shapes our decisions in the real world. It’s a handy marketing tool, but it does come with some caveats, which is why it’s important to use it wisely. How can you use the right wording to ensure loss aversion kicks in? And what should you avoid so that it doesn’t backfire?
It’s way more complex than evoking a FOMO response and saying “you don’t want to miss this.” You’ll learn how to set a reference point so that your price will make more people want to act on it, because not acting on it would be perceived as a loss by potential customers.
IKEA gets a load of airtime in this e-book, which is not all that surprising given the cognitive bias known as the “IKEA effect.” What role does this phenomenon play and how can you use it to your advantage?
We tend to overvalue what we own. So how can we make customers feel like they own something before they’ve even purchased it? Meet another one of loss aversion’s ramifications: the “endowment effect.”