The Endowment Effect is the psychological idea that people place a higher value on an object that they already own than the value they would place on the same object if they did not own it. When customers use a free trail or sample they become attached to it and see it as something they own. As well as increasing the chance of making the sale, offering a free trial will add value for your customer by letting them work out if your product fits their needs.
Ownership Experience:
During a free trial or when using a sample, customers have the opportunity to experience temporary ownership of the product. This hands-on experience allows them to become familiar with the product's features and benefits, building a sense of attachment and ownership. The more the customer engages with the product, the stronger this attachment becomes, making the customer value the product as if they own it.
Investment of Time and Effort:
Customers invest time and effort in exploring and trying out the product during the trial period. This investment creates a psychological connection and reinforces the Endowment Effect as they perceive the product as something they've put effort into.
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