Good News – Bad News Roller Coaster

Imagine you are travelling in a train. You check for your ticket in the pocket. It is not there. You search for it in your handbag.You get it. You get a sense of relief. Thus not finding the ticket in the first place was Bad News, followed by finding it which is Good News. This sequence gives a sense of relief, which would not have been there, had you found the ticket to begin with. At the time of relief, you are psychologically vulnerable—your cognitive resources to process bad news have been depleted. Your tendency to be loss-averse increases. Extend this situation to a car show room. There is an attractive advertised deal. The customer walks into the show room. He learns that the deal is not available on his selected model ( Bad News ). After some time and consultation, the salesman offers the deal on the model chosen by the customer, (Good News ).The salesman says an exception has been made just for you. You accept the deal as you do not want to lose the car. You negotiate with less vigour. Had you not been subjected to the bad news-good news sequence roller coaster in the first place, you would not have wound up the deal mostly on their terms.

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