User
Create an advertisement for a website that helps you find the perfect pet
and describe it below. Then explain the incentive you’re giving the consumer to purchase your product
then what is a sunk cost. 3. Describe a scenario where you or someone you know experienced a “sunk cost.” What was the sunk cost? How should/did it affect the person’s decision?
Ad: Looking for the perfect furry companion to bring into your life? Look no further than PetFinder.com! Our website connects you with local shelters and rescue organizations to help you find your perfect pet match. Whether you're looking for a playful puppy, a cuddly kitten, or a loyal senior dog, we have the perfect pet waiting for you. Start your search today and find your new best friend on PetFinder.com!
Incentive: To sweeten the deal, PetFinder.com is offering a special promotion for new users. Sign up now and receive a 10% discount on your adoption fees when you find your perfect pet through our website. Don't miss out on this opportunity to save on your new furry friend!
A sunk cost is a cost that has already been incurred and cannot be recovered. This cost should not be considered in future decision-making, as it has already been spent and cannot be recouped.
Scenario: A friend of mine purchased a gym membership at a high-end fitness club, but soon realized they were not using it as frequently as they had anticipated. Despite not using the membership, they felt obligated to continue paying for it each month because they had already spent a significant amount of money on the initial sign-up fee. This sunk cost mentality ultimately led to them wasting more money on a membership they weren't using instead of cutting their losses and canceling the membership. In this scenario, the sunk cost influenced their decision to continue paying for something they weren't benefiting from.