Dan Ariely, an author and expert on behavioral economics, recently answered a question regarding picking up/not picking up money in the Wall Street Journal. The question posed addressed why people will not stop on the street to pick up a dime, but would certainly stop to pick one up if it fell out of their pocket.
Dan pointed out that when someone picks up 10 cents, they add to their wealth (just a bit), but when they reclaim a dime that was dropped, they prevent a loss – and preventing a loss is perceived as much more important and valuable.
It’s amazing to me how the principals of behavior economics can explain human behavior. In my mind, loss is definitely an incentive. I have no desire to lose money. But honestly “finding” is also an incentive (at least for me).
Link to Dan’s article in the Wall Street Journal or contact me to discuss how behavioral economics might be influencing your current and potential customers.