Should You Instill Fear — or Hope — in Your Customers?

“The fear of loss is more powerful than the hope for gain.” Widely disseminated among marketers, this quote is adapted from the theory of loss aversion in economics. Essentially, what it means is that people would prefer to take action to avoid loss than to acquire gains. Another way to put it: Losing $20 is more psychologically impactful than winning $20. In … [Read more…]