Greg Wise says, “If you’ve ever signed up for a gym membership, then you’re already well aware of the power of sunk cost effect. Basically, every time you sigh and grumble your way to the gym to power up the elliptical, you’re falling prey to this phenomenon that says we’re reluctant to pull out of something that we’ve already put a lot of time, money, or effort into.

The sunk cost effect is obviously a very real thing, as you’ve experienced for yourself. There are also studies surrounding other items that prove the phenomenon exists outside of the physical improvement realm. One study centered on an imagined scenario with ski tickets. Participants were asked to imagine they’d accidentally double booked for two excursions. One was more expensive and decidedly less fun. The other was cheaper and guaranteed a good time. Most went with the snoozefest so as not to waste all that money“.

The Psychology of Ecommerce Sales: Taking Advantage of Sunk Cost Effect

HubSpot

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