Another psychological tactic brands use is the “sunk cost fallacy,” according to Reilly Newman, brand strategist, founder and author of the branding branding book “Brandy.” He said this “is rooted in our reluctance to abandon something after we have invested so much into it.”
Certainly, if you’ve ever felt yourself reluctant to switch products — say Apple products to cheaper competitors — you may be suffering from this.
“With brand loyalty, we have quite literally invested into a relationship with the brand with our time, trust and money. This is all a sunk cost that makes switching very difficult because we are very invested in our choice,” Newman said.
