Tag: loss aversion
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How to Measure Loss Aversion
To measure loss aversion among consumers in marketing, you can use the following approaches: 1. **Behavioral Experiments**: Design experiments where participants choose between options framed as potential losses or gains. For example, test whether consumers are more likely to act when told they could “lose $10” versus “gain $10” for the same decision[2][6]. 2. **A/B…
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Loss Aversion in Marketing:
Loss aversion, a cornerstone of behavioral economics, profoundly impacts consumer decision-making in marketing. It describes the tendency for individuals to feel the pain of a loss more strongly than the pleasure of an equivalent gain (Peng, 2025), (Frank, NaN), (Mrkva, 2019). This psychological principle, far from being a niche concept, permeates various aspects of consumer…