If you’ve ever signed up for a gym membership then you’re probably familiar with the power of sunk cost impact. In fact, every single visit to the gym grasps the grip of the sunk cost effect over you and thus prevents you from pulling it out.

The sunken cost effect has emerged as a reliable strategy for the E-commerce marketers to experience sales growth. Several researches and studies have shown that the users often get lured by the concept and proceed to make purchase.

This technique is essentially helping you decipher the consumer psychology as an E-commerce owner. We recommend that you adopt this simple guide to take advantage of the sunken cost impact to increase E-commerce sales.

Subscription Services

The main reason for poplar subscription services among visitors is the sunken cost impact. Subscription program provides guests with the ability to make purchases while taking advantage of extra advantages including discount coupons.

This is seen as an opportunity to save money when signing up to subscribe. The customers quickly came to terms with the fact that they experienced some means of enjoying the services and goods.

Despite the amount that users have already spent on subscribing, they often come out with good reviews of the product or service they get.

Just to justify the cost, users make way to posting blog posts, testimonials, sharing reviews over social media.

Subscription Benefits

Branding Benefits

The fact is that people are willing to pay a little extra for the brands that they hold affinity for. Since buyers believe that brands deliver highest quality of products and services, as an E-commerce site owner, you can always draw benefits through the sunk cost effect.

This is seen as an opportunity to save money when signing up to subscribe. The customers quickly came to terms with the fact that they experienced some means of enjoying the services and goods.

Despite the amount that users have already spent on subscribing, they often come out with good reviews of the product or service they get.

brand benefits

Assistance in Upselling

When buyers pay a hefty sum for some services or products, they are made to believe that by paying a little extra they can come across an even more spectacular experience.

For instance, when you purchase a personal computer, you are being offered with the option to buy an anti-virus. This would seem a great deal as you want something to protect your system against any threat.

It as a whole provides tremendous support in the upselling of items. We consider how much we pay for the purchase of the advertised product and determine on the basis of the same how much can be invested on the product offered by upselling.

Upselling E-Commerce Sales

As shown in the above case, the buyer considers the large amount invested in buying the laptop. Thinking that the amount is high, the buyer would prefer buying a antivirus so that such a threat does not mess with the laptop and affect the invest

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