Endowment Effect Exercise

Step 1: Setup

• Materials Needed: Product samples (real or hypothetical), ownership scenarios, "Rebel Unravel" cards detailing the endowment effect and other relevant biases, feedback forms.
• Room Preparation: Arrange a central area for discussions and role-play, with stations for different products and scenarios.

Step 2: Briefing Participants

• Explain the endowment effect and its implications for customer behavior and product valuation.
• Introduce the game's objective: to explore strategies that can induce or enhance the endowment effect in customers.

Step 3: Distributing Materials

• Provide each team with different product samples and scenarios where they must convince customers to feel a sense of ownership.

Step 4: Role-playing Interaction

• Teams take turns acting as salespeople and customers, with salespeople employing techniques to encourage customers to feel ownership of the product.

Step 5: Observation and Feedback

• Other participants and the facilitator observe each interaction, noting the effectiveness of strategies used to invoke the endowment effect.

Step 6: Discussion of Techniques

• After each role-play, discuss what techniques were effective or ineffective in creating a sense of ownership and why.

Step 7: Leveraging Biases

• Use the "Rebel Unravel" cards to identify other biases that might complement the endowment effect and discuss how these can be integrated into sales strategies.

Step 8: Strategy Development

• Based on insights gained from the role-plays and discussions, teams develop a comprehensive strategy to enhance customer attachment to products.

Step 9: Strategy Presentations

• Teams present their strategies to the group, explaining how they plan to implement the endowment effect and other biases in real-world sales scenarios.

Step 10: Expert Panel Feedback

• A panel of facilitators and invited experts provide feedback on each strategy, focusing on creativity, practicality, and psychological impact.

Step 11: Debriefing

• Conduct a debrief session to synthesize the day's learning, emphasizing the practical applications of behavioral economics in sales and marketing.

Step 12: Reflection and Learning

• Facilitate a reflection where participants consider how understanding the endowment effect will change their approach to customer interactions.

Step 13: Feedback Collection

• Gather feedback on the session's format and content to refine future iterations of the game.

Step 14: Follow-Up

• Plan a follow-up session to assess how the strategies developed are being implemented and their effectiveness in enhancing customer satisfaction and retention.

Step 15: Celebrating Success

• Acknowledge and reward participants who demonstrated innovative thinking and effective strategy development during the game.

Step 16: Continued Practice

• Encourage regular training sessions that incorporate behavioral economics principles to keep teams sharp and effective in customer engagements.

The Endowment Effect Exercise not only educates teams about a key psychological bias but also empowers them to use this knowledge to craft more engaging and customer-centric sales strategies.