Approach and Loss Aversion: Consumer Responses to Approaching and Receding Stimuli in Advertising

Consumers are increasingly confronted with dynamically moving stimuli in commercials, video games and virtual reality. Although the effect of physical (near vs. far) and psychological (concrete vs. abstract) distance of stimuli has been broadly investigated (Codispoti and De Cesarei 2007; De Cesarei and Codispoti 2006; Loftus and Harley 2005), much less is known about the effect of movement (approaching vs. receding) on advertising appeals and consumer decisions. Designing effective dynamic marketing campaigns requires better understanding of consumers’ reactions to stimuli either moving away from or toward them. Building on the approach and loss aversion biases, we predict that people would show more negative (positive) emotions and attitudes on advertising effectiveness toward approaching (receding) stimuli. People have an innate tendency of approach aversion, because approaching stimuli can be potentially more harmful and dangerous than receding stimuli. Approach aversion means that people feel more negatively toward a stimulus that is approaching rather than receding or static. This overgeneralized bias arises for a priori negative, nonnegative and ambivalent stimuli, and for stimuli moving in space, time, or probability (Davis et al. 2011; Hsee et al. 2014; Mühlberger et al. 2008). For instance, Hsee et al. (2014) reported more negative feelings toward neutral, negative and positive approaching stimuli than toward non-approaching stimuli. In line with these studies, we hypothesize that people will express more negative feelings toward approaching neutral stimuli versus non-approaching neutral stimuli (H1a).