Elliott Botterill explains loss aversion, the psychological bias where fear of losing something outweighs desire to gain it. Marketers can use this ethically by warning customers that a low price will soon disappear, pushing fence-sitters to buy now by framing the message around the pain of missing out.
it also taps into one of the most powerful action drivers in humanity, which is loss aversion bias. This is where, as humans, our innate fear of loss is generally stronger than our desire to gain. We typically see in a lot of our marketing messages, if we are talking about the pain and the potential of losing something, that is stronger than the desire to gain it. And we can exploit this the price increase campaign because we let people know, hey, in not very long, this price that you have right now is going to be gone forever. You're going to lose the opportunity to have that price. And therefore we can drive a lot of action and get a lot of people that are on the fence off the fence and paying us money.
