Loss Aversion and Psychological Retention: A Behavioral Study of
Subscription Models in Digital Platforms

Adriel Nitin Abel

doi:10.46609/IJSSER.2025.v10i09.047

Title: Loss Aversion and Psychological Retention: A Behavioral Study of Subscription Models in Digital Platforms
Authors: Adriel Nitin Abel
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 10 Issue: 9 Publication Date: September 2025 DOI: 10.46609/IJSSER.2025.v10i09.047
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Adriel Nitin Abel Heritage International Xperiential School, India
MLA 8 Abel, Adriel Nitin. "Loss Aversion and Psychological Retention: A Behavioral Study of Subscription Models in Digital Platforms." Int. j. of Social Science and Economic Research, vol. 10, no. 9, Sept. 2025, pp. 4435-4444, doi.org/10.46609/IJSSER.2025.v10i09.047. Accessed Sept. 2025. APA 6 Abel, A. (2025, September). Loss Aversion and Psychological Retention: A Behavioral Study of Subscription Models in Digital Platforms. Int. j. of Social Science and Economic Research, 10(9), 4435-4444. Retrieved from https://doi.org/10.46609/IJSSER.2025.v10i09.047 Chicago Abel, Adriel Nitin. "Loss Aversion and Psychological Retention: A Behavioral Study of Subscription Models in Digital Platforms." Int. j. of Social Science and Economic Research 10, no. 9 (September 2025), 4435-4444. Accessed September, 2025. https://doi.org/10.46609/IJSSER.2025.v10i09.047.
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ABSTRACT: The paper explores the role of loss aversion and related behavioral biases in driving user retention across digital subscription platforms. Popular media services including Netflix, Spotify, and EdTech providers are increasingly using behavioural design techniques to drive user engagement on their platforms. This study uses key concepts from behavioral economics including prospect theory, the endowment effect, sunk cost fallacy, status quo bias, nudging, and fear of missing out (FOMO) to analyze how the influence on cognitive patterns influence the cancellation decisions for users. For this analysis, the study employs a mixed-method approach including a literature review, case study analysis and primary survey data collected from users of various subscription services. This paper aims to highlight how loss perception and behavioral inertia contribute to the subscription ‘stickiness’ for its users. The results of this study are expected to improve the understanding of psychological retention and offer broader insights into ethical design in the subscription economy.

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