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The Most Ridiculous Loss Aversion Example

Episode 9 of The Brainy Business podcast (which came out today) was the first Behavioral Economics Foundations episode, and it was dedicated to Loss Aversion. In it, after a list of GOOD examples for loss aversion (including those for real estate agents, financial institutions, accountants, business coaches, wedding retailers, and more) I give an example of a very ridiculous pop up that came up on a website trying to sell an online product. Loss Aversion Taken Too Far This is an example of taking loss aversion too far, where you might inadvertently trigger the conscious brain to be flagged for the wrong reasons, and talk your potential customer right out of a sale. It actually does a lot of things[….]

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The real value of free

Many marketers avoid using the word “free” in their advertising. The fear is that the general public has become immune to the word. That they will see (or hear) it and think – spam. I know this because I used to be one of them. However, behavioral economics has done a lot of studies into the power of “free” Is its value higher than zero? It turns out…that it is. Picture this: You are walking into the grocery store and see a small stand selling candy. Even if you are one of those people who typically avert your eyes and walk by as quickly as possible…let’s assume you stop (and that you have change in your pocket). They are selling[….]

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