People are more likely to consume a product if they’re aware of its cost.
This is known as the sunk-cost effect: Consumers feel compelled to use products they’ve paid for to avoid feeling that they’ve wasted their money. It’s well documented that consumers routinely consider sunk costs when deciding future courses of action.
In one example made famous by Richard Thaler, a behavioral economist at the University of Chicago, a man joins a tennis club and pays a 300.”
Read more at: Pricing and the Psychology of Consumption
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