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Social & Emotional Influence

Loss Aversion

The tendency to prefer avoiding losses over acquiring equivalent or greater gains. People are more motivated by the fear of loss than by the prospect of an e...

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Highlights potential losses to motivate user actions

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Can feel manipulative if overemphasised

Best paired with

Progressive Disclosure

Gradual information reduces fear-based decision-making.

Choice Architecture

Users benefit from structured choices that reduce avoidance behaviour.

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Checkout

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Error Messages

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Conversion

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Retention

The Study

Loss Aversion explores how individuals' decisions and perceptions are influenced by underlying psychological mechanisms. Research on this bias has revealed its role in everyday behaviours and decision-making processes. Studies often involve experiments where participants' reactions are observed to determine the bias's impact. This understanding helps designers and marketers craft more effective, user-centric experiences.

The result

The results indicate that loss aversion significantly influences decision-making by altering perception, recall, or emotional response. These findings provide valuable insights into cognitive behaviour, informing design strategies.

Actionable tips

1.

Highlight potential losses to drive action.

2.

Frame gains to minimise perceived risks.

3.

Balance urgency with ethical messaging.

Bias pairings

How pairing with other biases leads to greater impact, while pairing with some leads to a poorer experience.

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Best paired with

Progressive Disclosure

Encourages rational thinking while preventing emotional overreactions.

Choice Architecture

Minimises loss-related anxiety while preserving decision autonomy.

Nudge

Encourages balanced decisions while reducing fear-driven inaction.

Feedback Loop

Promotes learning while discouraging avoidance of necessary risks.

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Avoid pairing with

Fear of Missing Out (FOMO)

Manipulates fear of loss to drive impulsive actions.

Scarcity Principle

Exploits fear-based thinking to encourage unnecessary urgency.

Overconfidence Effect

Encourages unrealistic optimism while ignoring potential downsides.

Default Bias

Discourages exploration of better alternatives due to loss avoidance.

Affects on other biases

Learn the additional affect on other biases when solving for this one.

Status Quo Bias

Encourages preference for maintaining familiar, low-risk decisions.

Scarcity Principle

Increases urgency by emphasizing the fear of missing out.

Case studies featuring this bias

Enabling personalisation and persuasion through Medium's onboarding

Creating calm and conviction with Headspace’s onboarding

How Netflix fuels binge habits through discovery

Psychology Cocktails using this bias

More cocktails will be created with this bias soon.