MotivationM7

Loss Aversion

The pain from losses is more powerful than the pleasure from gains.

Strategy card · Desire24 Pathways

The research

Consumers were either asked to build up a pizza by adding toppings like pepperoni and mushrooms, or to scale down from a fully-loaded pizza with all toppings. Consumers assigned the fully-loaded pizza ordered more expensive pizzas since they didn't want to lose their toppings.

Levin; et al. (2002). A Tale of Two Pizzas

Losses loom larger than gains.

Thought starters

Frame benefits as losses that people will give up

Give people an idea of what it might be like to enjoy the benefits

Show the immediate losses that the individual will incur

Combine with (O2) Endowment effect.