Users value what they own more than what they don't.
Definition
The Endowment Effect refers to a cognitive bias where users assign greater value to items they perceive as belonging to them. It's a psychological phenomenon that suggests ownership increases perceived value.
Do
Allow users to personalize or customize their experiences
Highlight the value of products or features users have chosen or purchased
Use the Endowment Effect to encourage emotional attachment and user loyalty
Avoid
Don't underestimate the value users place on their choices or possessions
Don't remove or change user-customized settings or features without clear communication and consent
Don't neglect opportunities to amplify the Endowment Effect through personalization