On my Facebook newsfeed, I saw this ad that I thought very well represented some of the things we've been talking about in class, such as the endowment effect and anchoring.

The advertisement is for purchasing a box of makeup or a subscription for a box of makeup every month. I thought this was very interesting because I have never seen an ad like this for makeup products. The ad looks like this:




The creators of the ad are really trying to get their potential customers to choose to subscribe to their program. They try to have their guests anchor on the first option by placing "Subscribe for $36" first. Also, right after the option of a one-time purchase, they placed the small text "Subscribers will receive monthly personalized boxes and can cancel or skip anytime," which tries to point the customers at the subscription option right after the customer considers the one-time purchase option. The marketer included the option of a one-time purchase for $40, but seems to be telling the guest not to chose that option at the same time. It's as if they are asking: why would you chose the one-time purchase option when they can subscribe at a cheaper price and be able to cancel at anytime? Wouldn't that be the same thing?

Of course, the reason that the creators of the ad are targeting for subscriptions is because of the endowment effect. The marketers are hoping that that once guests receive their first box of makeup products, they will feel like they "own" the future makeup products that will come, and it will be more difficult for them to cancel their subscription.