The sunk cost fallacy is a cognitive bias that can cause people to make irrational decisions, and businesses utilize it strategically to retain consumers through loyalty programs and subscription-based models. However, ethical concerns must be addressed, and transparency should be prioritized in order to foster customer trust. By consistently enhancing the value they offer, companies can build long-term loyalty that extends beyond the influence of the sunk cost fallacy. Recognizing when to let go and make rational decisions based on present value and future prospects is essential, freeing us from the constraints of sunk costs and allowing us to make choices that align with our evolving needs and desires.
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