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Impact of Punishment

 

The impact of punishment is determined by the extent to which the losses incurred depending on the severity of the punishment imposed exceed the tolerable threshold for the impact of the punishment. The formula is as follows:

 

Punishment = severity of punishment * loss > threshold

 

This formula means the following: the impact of punishment increases with severity of punishment and value of losses incurred as a result of punishment, and depends on how much it exceeds the threshold of perception. It can be described in another way: if the impact of punishment does not exceed the threshold of perception, we can assume that there was no punishment. The impact of the punishment is reduced if its severity and / or loss are insufficient or not valuable to the punished person.

 

How can these components change in connection with the purchase?

 

  • Severity of punishment increases

  • The value of losses also increases

  • Tolerable exposure threshold may decrease

 

Why do these changes inevitably exceed the threshold?

 

  • Severity of punishment increases to the maximum

  • Value of loss exceeds threshold

  • The tolerable threshold for the impact of punishment is reduced to almost zero

 

In this case, the seller needs to ask the following questions:

 

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

 

  1. How severe will the punishment be? (name the punishment and evaluate the degree of its severity)

  2. How significant will your losses from punishment be? (name and evaluate the level of losses)

  3. How is the tolerable threshold for the impact of punishment determined? (name and evaluate the threshold value)

  4. Why can the severity of punishment increase?

  5. Why will your losses increase?

  6. Why can the tolerable threshold for the impact of punishment be reduced?

  7. Why do you think that the severity of punishment will increase to the maximum?

  8. Why do you think that the level of losses will exceed the allowable threshold?

  9. Why do you think that the tolerable threshold for the impact of punishment can be reduced to almost zero?

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Loss from Punishment | Threats and Their Scenarios | Stress

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