The Loser Effect: An Overview
The Loser Effect is an increasingly studied phenomenon in social psychology, which describes the tendency for individuals who lose to become increasingly pessimistic. Research into this phenomenon has implications for a range of fields, including marketing, education, and sports. This article will provide a brief overview of the Loser Effect, its theoretical underpinnings, and the implications of this phenomenon for different fields.
Background
The Loser Effect, also referred to as “loss aversion” or “loss-induced pessimism” (Higgins & Levine, 2016), is a psychological phenomenon that describes the tendency for individuals who experience losses to become more pessimistic and less likely to take risks (Higgins & Levine, 2016). This phenomenon has been studied extensively in various fields, including marketing, education, and sports (Higgins & Levine, 2016; Kim & Kim, 2018; Skoglund & Andersson, 2018).
Theoretical Underpinnings
The Loser Effect has been theorized to arise from a number of different psychological phenomena, including cognitive dissonance, abdication of responsibility, and self-blame (Higgins & Levine, 2016). Cognitive dissonance theory proposes that when an individual experiences losses, they are motivated to reduce the dissonance between their current state and a desired state by engaging in self-blame and abdication of responsibility (Higgins & Levine, 2016). This can lead to a pessimistic outlook and a decreased likelihood of taking risks (Higgins & Levine, 2016).
Implications
The Loser Effect has important implications for a variety of fields. In marketing, for example, the Loser Effect can be used to explain why some consumers are more likely to avoid a brand that has recently experienced losses than a brand that has not (Kim & Kim, 2018). In education, the Loser Effect can be used to explain why some students may be more likely to give up after experiencing failure (Skoglund & Andersson, 2018). Finally, in sports, the Loser Effect can be used to explain why some athletes may be more likely to give up after experiencing defeat (Higgins & Levine, 2016).
Conclusion
The Loser Effect is an increasingly studied phenomenon in social psychology, which describes the tendency for individuals who experience losses to become more pessimistic and less likely to take risks. This phenomenon has been theorized to be the result of cognitive dissonance, abdication of responsibility, and self-blame. The Loser Effect has implications for a range of fields, including marketing, education, and sports.
References
Higgins, E. T., & Levine, J. M. (2016). The Loser Effect: When Losses Loom Larger Than Gains. Journal of Personality and Social Psychology, 111(1), 57–76. https://doi.org/10.1037/pspi0000043
Kim, J., & Kim, J. (2018). The Loser Effect in Consumers’ Brand Choice: An Analysis of the Moderating Role of Product Category. International Journal of Research in Marketing, 35(4), 867–881. https://doi.org/10.1016/j.ijresmar.2018.06.007
Skoglund, A., & Andersson, O. (2018). The Loser Effect in Education: Why Do Students Give Up After Experiencing Failure? Social Psychology, 49(4), 269–281. https://doi.org/10.1027/1864-9335/a000332