Tom Spencer

6 Ways to Overcome Loss Aversion

Post author By Tom Spencer
Post date October 26, 2013
2 Comments on 6 Ways to Overcome Loss Aversion

Loss aversion can lead people to favour the status quo, and so clever marketing is sometimes needed to convince people to buy new products LOSS AVERSION can lead people to favour the status quo. How so? Well, when a consumer considers replacing a good, the presence of loss aversion can lead her to experience more pain […]

Tags Business Strategy, consulting, deferred payment plans, framing, loss aversion, Management Consulting, marketing strategy, money back guarantees, trade-ins, trial offers

Economics

How Much Loss Aversion Will A Person Feel?

Post author By Tom Spencer
Post date October 23, 2013
3 Comments on How Much Loss Aversion Will A Person Feel?

“Everything is relative in this world, where change alone endures” (Leon Trotsky) IF you were offered the chance to win or lose $100 on the basis of a coin flip, would you take the bet? If you are like most people, you would probably decline the wager. Even though the gamble offers an even chance […]

Tags Amos Tversky, Andreas Herrmann, consulting, Daniel Kahneman, Economics, Eric Johnson, everything is relative, George Loewenstein, Gretchen Chapman, intention, Jack, Knetsch, Leon Trotsky, loss aversion, Management Consulting, Michal Strahilevitz, Nathan Novemsky, Richard Thaler, Simon Gaechter

Economics

Loss Aversion

Loss aversion is a widespread behavioural trait which causes people to experience the suffering from a loss much more deeply than the joy from a commensurate gain Background Everyone knows that people don’t like to lose things. People are reluctant to give their old clothes to Vinnies, to leave dysfunctional relationships, or to throw away […]