The Endowment Effect

Written by Matthew Narcisse

Matthew Narcisse is a junior at the University of Florida studying psychology and business. He is interested in a career as a market researcher and plans on continuing his learning after undergrad to become a psychologist. In his spare time, he serves as president of the Southern Scholars Foundation and volunteers in his community.

Photo by DS Stories

In my senior year of high school, my dad promised me that if I got into the University of Florida, he would buy me a blue car. Fortunately, I was accepted, and my father proudly kept his promise! Although the car price was $3000, I saw it as priceless because I had earned it. 

In sales, everything has value. Whether it’s cheap or expensive, any existing product can gain value without modifications. In relation to psychology, increased customer satisfaction can occur simply by setting the product’s price above the market value.


The endowment effect is a bias that influences people to value a product more than its market value due to ownership. For example, one values their coffee mug at $5 even though the market value equals $2. The mug is valued at a higher price to produce increased customer satisfaction. The owner feels like the purchase is a good decision and valuable. 

The feeling of ownership plays a role in the value of an item. Ownership creates an abstract connection between the product and the buyer, which increases the product’s value. Simply touching the product creates the link that compels customers to buy it.


Most people in sales jobs exploit the endowment effect to sell products at a higher price. If we feel a sense of ownership, we’ll be willing to pay more for something. Many fall victim to this manipulation tactic and find themselves overspending. Instead of using this bias to trap people, the endowment effect can benefit customers and increase customer satisfaction. A car salesperson can offer a test drive and allow the driver to adjust the seating to their liking. Additionally, they can compliment how the car’s color and structure complement the prospect while sticking with the appropriate market value. This approach will leave the customer satisfied and leave a good reputation for the salesperson and the company.

In the form of non-material products such as services and subscriptions, the endowment effect is used by offering free trials, free returns, and haptic imagery. Therefore, allowing temporary possession of the product and building a sense of ownership. This possession allows the buyer to compare how life was without it. Usually, buyers are reluctant to make a return or unsubscribe due to loss aversion. 

Having the right effect

In many instances, there is controversy regarding ethical use of the endowment effect by businesses. Most people in sales jobs are selling their products by exploiting the fears and anxiety of customers. Instead, people in sales jobs should build a relationship based on the trust and reliability of their products or services. Providing a genuine product or service that will benefit customers is the right way to use the endowment effect.

Victoria Zamitalo

Campaign Manager

Victoria received a BA in History and Economics from the University of Florida in May 2023. She is a driven sales professional with over 5 years combined experience in customer service, consumer relations and outbound sales, and is deeply passionate about fostering close relationships between consumers and sellers. She aims to train the next generation of sales professionals in not only the tricks of the trade, but also interpersonal skills that make sales the exciting and ever-changing industry that it is.

Mia Semel

Campaign Manager

Before graduating with a B.A. in Sustainability Studies, Mia took on multiple roles while interning at The Selling Factory, including sales development, recruiting, and leading campaigns. She is an active listener and effective communicator, specializing in fostering genuine connections and finding common ground among differing perspectives. She aims to find practical, creative solutions regarding sustainable development, biodiversity and the climate crisis.

Kira Grieve

Senior Campaign Manager

Kira graduated from the University of Florida and received her Master of Science in Entrepreneurship. She is passionate about helping businesses grow and connecting with new people. Some of her hobbies include traveling and hiking. She hopes to visit all of the National Parks one day!

Jared Glosser

Vice President

After graduating from UF in 2014 with a B.A. in history, Jared started his professional career Fundraising for a non-partisan political lobby in South Florida. In 2016, Jared moved back to Gainesville to work for a non-profit, recruit students for international travel opportunities, and pursue his MBA at UF. Jared has been with The Selling Factory since 2019 focusing on operations, client onboarding, and client success.

Ian Massenburg

Chief Operating Officer

A graduate of University of Florida (B.A. 2001), Ian Massenburg brings over 18 years of sales executive and sales management experience to The Selling Factory. Before coming on-board, Ian worked alongside Brad at Infinite Energy, and then spent his next 3 years as VP of Partnerships selling SaaS products B2B. Ian brings his vast knowledge and experience to the team and to our partner companies served.

Damien Paulk

Campaign Manager

Damien is a University of Florida graduate that recently joined the team full time after working as a Sales Development Intern for one year. As a Campaign Manager, Damien looks forward to contributing to the growth and success of The Selling Factory. When Damien is not at work he enjoys exploring Gainesville with his girlfriend and dog or watching the Gators dominate college football.

Brendan Viehman

Campaign Manager

Brendan graduated from Liberty University with a Bachelor of Science in Business Administration and Project Management. For the past 5 years, he has enjoyed working with blockchain technology and cryptocurrency development. In his free time, he surfs and makes personal finance videos for his YouTube channel.

Savannah Howard

Campaign Manager

A graduate from the University of Florida’s College of Journalism and Communications, Savannah obtained her Bachelor of Science in public relations with a concentration in French. After almost two years as a sales development intern for The Selling Factory, she joined the leadership team in 2021 taking on the role of Campaign Manager. In her free time, Savannah enjoys going to concerts and festivals and cooking for her friends and family.

Zack Kampf

Campaign Manager

Zack is a creative technologist with experience in advertising, event planning, and game design. He started as an SDR in 2018 and has been with TSF ever since. Upon graduating UF in 2019 he became a campaign manager and is currently seeking a master's degree from NYU. In his spare time, you can find him at the intersection of Art & Technology!

Josiah Blakemore

Growth Manager

Josiah has over 10 years of sales experience, worked with Brad and Ian at Infinite Energy, and also spent time selling SaaS as Director of Partnerships at SharpSpring. He’s always been very competitive and has a love for sports and games. He enjoys solving problems and coaching team members to do the same!

Sue-Ming Frauenhofer

Marketing Manager

Sue-Ming received both her B.S. in Psychology and M.S. in Management from The University of Florida. As a student, she took on multiple roles while interning at The Selling Factory, including sales development, marketing, and recruiting, eventually leading to her current role as Marketing Manager. She enjoys refining her taste in music and visual art, engaging in mindfulness and meditative practices, and frolicking outside with her sidekick pup.

Adam Grossman

Chief Development Officer

Adam is an ordained rabbi, who has founded multiple ventures focused on workforce development. Hired as CEO by a failing non-profit, in over 5 years, his ingenuity saved the organization, which led to recognize it as one of North America’s most innovative Jewish non-profits. His expertise to identify, cultivate, and on-board talent ensures our student teams meet our partners’ needs.

Brad Gamble

Chief Executive Officer

After graduating from UF in 1999 with a B.S.B.A, Brad Gamble has dedicated himself to sales management, branding, coaching, and building companies. He served as the VP of Sales & Marketing for Infinite Energy until 2014, when he founded The Selling Factory. He has dedicated himself to teaching critical skills to tomorrow’s leaders, and helping companies achieve sales success and revenue growth.