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Loss from Punishment

 

Loss from punishment depends on how valuable a lost resource is, how much of this resource might be lost as a result of punishment, how this resource could be recovered from lost resources or gained from some source, and how much the reduction of available resources will exceed the tolerable threshold of these losses. Loss is determined by the value of lost, gained and restored resource and tolerable threshold. Formula is like follows:

 

Loss = value * (lost - gained - restored) > threshold

 

If the value of the lost resource is zero, then the loss is absolutely not important. Lost resource is what a person loses; gained resource is what the person receives from some source; restored resource is what could be recovered from the lost resource. And the threshold is the limit of loss, exceeding which causes an emotional reaction.

 

How can these components change in connection with the purchase?

 

  • The value of the lost resource increases

  • The amount of lost resource also increases

  • Opportunities to acquire this resource decreases

  • Opportunities to restore lost resources are reduced

  • Tolerable loss threshold may also decrease

 

Why do these changes inevitably exceed the threshold?

 

  • The value of the lost resource will increase to the maximum

  • The amount of the lost resource will exceed the threshold

  • Opportunities to find this resource will be reduced to almost zero

  • Opportunities to restore a lost resource will also be reduced to almost zero

  • Tolerable loss threshold will drop to almost zero

 

In this case, you need to ask the following questions:

 

If you decide to buy our product on our terms and will be punished for it:

 

  1. What resource will you lose due to punishment? (name the resource and estimate the size of its loss)

  2. What sources do you usually get this resource from? (name sources and estimate the amount of received resources)

  3. How do you usually recover lost resources? (name methods and estimate the amount of recoverable resources)

  4. How valuable is this resource to you? (name and evaluate the level of value)

  5. How is the tolerable loss threshold for this resource determined? (name and evaluate the threshold value)

  6. Why will resource loss grow?

  7. Why will the ability to get this resource from accessible sources be reduced?

  8. Why will the ability to recover lost resources be reduced?

  9. Why will this resource become more valuable?

  10. Why can the tolerable threshold for the loss of this resource be reduced?

  11. Why do you think that the loss of a resource will exceed the tolerable threshold?

  12. Why do you think that the ability to get this resource from available sources will fall to almost zero?

  13. Why do you think that the ability to recover lost resources will fall to almost zero?

  14. Why do you think that the value of the resource will increase to the maximum?

  15. Why do you think that the tolerable threshold can be reduced to almost zero?

Decision to Punish | Threats and Their Scenarios | Impact of Punishment

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