Shot #3 : Pain from Loss > Pleasure from Gain
Understanding the human behaviour
Hi there,
Hope your work week started well. Here's your marketing shot #3
Pain from Loss > Pleasure from Gain
Let's say you own a credit card which has an annual fee of INR 2000.
You receive 2 messages from your credit card company
Message 1: Spend INR 10,000 this month and get Amazon Voucher worth INR 2000
Message 2: Spend INR 10,000 this month and get a full waiver on your annual fee of INR 2000
Even though the EFFORT and the GAIN is same, you are most likely to pay attention to MESSAGE 2.
This is because you are LOSS AVERSE.
Loss Aversion refers to the psychological principle that people tend to prefer avoiding loss instead of acquiring similar gains.
This means that most people would work harder to avoid losing INR 2000 than they would to make the same amount.
HINT for marketers, no? Use this psychology hack for your business and see the change :)
Thanks,
Missed out on any previous shots? Read it here
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