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An Application Framework for the Loss Aversion Distribution: Insights for Marketing, Education, and Digital Adoption

Author

Listed:
  • Daniel Koh
  • Zulkifli Jalil

Abstract

This paper introduces a structured framework for applying the Loss Aversion Distribution (LAD) model, a novel approach to understanding time-sensitive decision-making behaviors influenced by loss aversion. The LAD model provides actionable insights for industries by capturing how perceived value diminishes over time, optimizing pricing strategies, improving student performance, and enhancing digital adoption within organizations. Specifically, LAD is applied to consumer pricing strategies, helping businesses determine optimal discounting approaches for perishable goods based on consumers’ loss-averse purchasing behavior; student study behavior, identifying patterns in procrastination and urgency before final examinations to support targeted educational interventions; and digital adoption in workplaces, addressing employees' resistance to new technologies by predicting adoption trends and informing change management strategies. By providing a generalizable and adaptable framework, LAD bridges the gap between behavioral economics and practical decision-making, making it a valuable tool for businesses, educators, and policymakers seeking to enhance outcomes in time-sensitive environments.

Suggested Citation

  • Daniel Koh & Zulkifli Jalil, 2025. "An Application Framework for the Loss Aversion Distribution: Insights for Marketing, Education, and Digital Adoption," International Journal of Business and Management, Canadian Center of Science and Education, vol. 20(2), pages 1-1, August.
    • Handle: RePEc:ibn:ijbmjn:v:20:y:2025:i:2:p:1
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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