Loss Aversion in Marketing

Why fear of losing works harder than the promise of gain, and how to use it without crossing the line.

There’s a bias we' can’t escape. Behavioral economists Daniel Kahneman and Amos Tversky proved what we all feel instinctively: people hate losing more than they love winning.

It’s called loss aversion. And it explains why:

• We’ll go out of our way to avoid a fee, even if it costs us more time.

• We click on “Don’t miss out” emails faster than “Here’s a deal.”

• …