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Why We’re Irrationally Loyal to Amazon Prime

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Manage episode 523228340 series 3361492
Content provided by Phill Agnew. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Phill Agnew or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

2 out of 3 internet users in the USA pay for Prime.

Yet, most of them are irrationally loyal.

They feel like the subscription provides more cost savings than reality.

Today, on Nudge, Richard Shotton and I explore the behavioural science behind Amazon Prime.

We look at the sunk-cost fallacy and pennies-a-day effect to explain why so many are irrationally loyal to Amazon Prime.

---

Subscribe to the Nudge Vaults: https://www.nudgepodcast.com/vaults

Read Richard’s book: https://a.co/d/fEW7amQ

Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list

Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/

Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/

---

Today’s sources:

Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior and Human Decision Processes, 35(1), 124–140.

Gourville, J. T. (1998). Pennies-a-day: The effect of temporal reframing on transaction evaluation. Journal of Consumer Research, 24(4), 395–403.

Gourville, J. T., & Soman, D. (1998). Payment depreciation: The behavioral effects of temporally separating payments from consumption. Journal of Consumer Research, 25(2), 160–174.

Roth, S., Robbert, T., & Straus, L. (2015). On the sunk-cost effect in economic decision-making: A meta-analytic review. Business Research, 8(1), 99–138.

  continue reading

271 episodes

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Why We’re Irrationally Loyal to Amazon Prime

Nudge

112 subscribers

published

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Manage episode 523228340 series 3361492
Content provided by Phill Agnew. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Phill Agnew or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

2 out of 3 internet users in the USA pay for Prime.

Yet, most of them are irrationally loyal.

They feel like the subscription provides more cost savings than reality.

Today, on Nudge, Richard Shotton and I explore the behavioural science behind Amazon Prime.

We look at the sunk-cost fallacy and pennies-a-day effect to explain why so many are irrationally loyal to Amazon Prime.

---

Subscribe to the Nudge Vaults: https://www.nudgepodcast.com/vaults

Read Richard’s book: https://a.co/d/fEW7amQ

Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list

Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/

Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/

---

Today’s sources:

Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior and Human Decision Processes, 35(1), 124–140.

Gourville, J. T. (1998). Pennies-a-day: The effect of temporal reframing on transaction evaluation. Journal of Consumer Research, 24(4), 395–403.

Gourville, J. T., & Soman, D. (1998). Payment depreciation: The behavioral effects of temporally separating payments from consumption. Journal of Consumer Research, 25(2), 160–174.

Roth, S., Robbert, T., & Straus, L. (2015). On the sunk-cost effect in economic decision-making: A meta-analytic review. Business Research, 8(1), 99–138.

  continue reading

271 episodes

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