Jump to ContentJump to Main Navigation
Law, Psychology, and MoralityThe Role of Loss Aversion$
Users without a subscription are not able to see the full content.

Eyal Zamir

Print publication date: 2014

Print ISBN-13: 9780199972050

Published to Oxford Scholarship Online: November 2014

DOI: 10.1093/acprof:oso/9780199972050.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 27 November 2021

Consumer Behavior

Consumer Behavior

(p.55) 2 Consumer Behavior
Law, Psychology, and Morality

Eyal Zamir

Oxford University Press

This chapter focuses on the exploitation of consumers’ loss aversion by suppliers. One example is the effect of different framings of price and other attributes on consumer decisions (for example, cash discounts versus surcharges for credit). The chapter also examines how the limited availability of goods influences purchase decisions. It argues that escalation of commitment is one explanation for consumers’ failure to read standard-form contracts, and for the effectiveness of “low ball” and “bait-and-switch” marketing techniques. It explains why liberal return policies are a double-edged sword, given customers’ endowment effect. Finally, it draws attention to how suppliers exploit consumers’ status quo and omission biases to the suppliers’ advantage.

Keywords:   consumer behavior, cooling-off period, credit cards, endowment effect, limited availability, marketing, framings of price, return policy, scarcity, standard-form contracts

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .