The center is trying to reduce the pain of paying for the membership by not calling attention to each payment transaction. They also don’t want members to evaluate their consumption experience and possibly choose to cancel their membership.
A children’s gym and activity center has members sign up for recurring monthly dues payments, and they don’t send monthly payment reminders or give members a reminder that their membership is rolling into another month. Using your knowledge of mental accounting, how would you best explain the center’s strategy?
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