Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)

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Impact of Loss Aversion on Marketing

Authors
Zhenghong Gu1, Yujia Zhang2, Zimo Zhang3, *
1Hanghong No.4 High School International School, Hangzhou, 313000, China
2Shenzhen College of International Education, Shenzhen, 518000, China
3Shenzhen College of International Education, Shenzhen, 518000, China
*Corresponding author. Email: s20294.zhang@stu.scie.com.cn
Corresponding Author
Zimo Zhang
Available Online 31 December 2022.
DOI
10.2991/978-94-6463-036-7_63How to use a DOI?
Keywords
loss aversion; behavioral economics
Abstract

Scholars had long found that people were more concerned with losing than gaining. This theory was not confirmed experimentally by Tversky and Kahneman until 1979. Loss aversion was the truth that losses had a greater influence than gains. It was a basic property of behavioral account of choices. This review paper reviewed that loss aversion was affected by age, level of education and evaluation frequency. Marketers such as merchants took advantage of this fact to earn more profit, but not all policies benefited consumers. Consumers could mitigate the impact of loss aversion by exercising more to alleviate the degeneration of the brain and make more rational decisions. In most instances, risk aversion was closely linked and caused by loss aversion. But plenty of other studies showed that loss aversion didn’t stand alone, and that people made wrong decisions because of other factors too. Therefore, this motivated more people from other fields to contribute to the research of loss aversion.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
31 December 2022
ISBN
978-94-6463-036-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-036-7_63How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zhenghong Gu
AU  - Yujia Zhang
AU  - Zimo Zhang
PY  - 2022
DA  - 2022/12/31
TI  - Impact of Loss Aversion on Marketing
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 428
EP  - 435
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_63
DO  - 10.2991/978-94-6463-036-7_63
ID  - Gu2022
ER  -