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The Endowment Effect Exploitation

Give customers temporary ownership or access to increase their willingness to pay for permanent access.

Explanation

The endowment effect makes people value things more highly once they own them. By giving customers temporary ownership—through trials, free accounts, or preview access—you increase their psychological ownership and make giving it up feel like a loss. This shifts the decision from 'should I buy?' to 'can I afford to lose this?'

Real-World Example

Adobe moved from purchase to subscription by first giving users full access, making downgrade feel like losing capabilities. Amazon Prime's 30-day free trial makes customers feel like existing members who would lose benefits by canceling. Freemium games give premium currency/features temporarily.

How to Apply

Identify which features or benefits customers can 'own' temporarily. Give trial access to premium features, not limited functionality. Send emails highlighting what they'll 'lose' by not upgrading. Use language of ownership ('your dashboard,' 'your premium features') during trial periods. Time conversion asks when usage is highest.

Related Topics

ownershiptrialspsychology

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