Understanding the Endowment Effect
Did you know something as simple as a sense of ownership can drastically boost your app’s stickiness? Let's dive into how the Endowment Effect can transform your app strategy.
What is Endowment Effect?
The endowment effect describes how people tend to value items that they own more highly than they would if they did not belong to them. This means that sellers often try to charge more for an item than it would cost elsewhere.
The endowment effect is like that funky old sweater in your closet - the one you haven't worn in ages but just can't seem to toss out. It's all about the trick our minds play, making us overvalue things simply because we own them.
Picture this: for every item you own it’s convincing you it's worth so much more, just because it's yours. This phenomenon turns our wardrobes into treasure troves of nostalgia and our garages into museums of 'too precious to let go'.
And guess what? The same mind trick applies to your mobile app. By fostering a sense of ownership in your users – even for digital experiences – you tap into the endowment effect. This makes them reluctant to let go of your app, even if they aren't using it all the time.
See how this behavioral principle is used to impact your perception and motivation in UX.
See detailed breakdown on Behance
See detailed breakdown with all examples on UserMindful.Design
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Other Principles:
Read about Social Proof and see how it influences your decision-making through the behavior and opinions of others.
Read about Defaults and see how it helps you make decisions without knowing
Read about Uncertainty and how it stops you from taking action
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Behavior Design:
As UserMindful.Design we aim to introduce behavioral frameworks, models and methods closer to the UX community in order to support development of ethical, inherently engaging digital products that redefine how people connect, thrive and persevere.
Contact us: contact@usermindful.design
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Disclaimer:
*This material is created for educational and analytical purposes only. UserMindful is not affiliated with, endorsed by, or sponsored by Spotify or its parent company. All logos and trademarks used in this material belong to their respective owners and are included here under fair use for educational purposes. This work is independent and has not been authorized, sponsored, or otherwise approved by Spotify.