Framing effect: meaning & examples in marketing

Introduction

Entrepreneurs make countless decisions every day: from market penetration strategies to pricing and personnel management. But are you aware that the way information is presented can significantly influence the decisions you make, even if the underlying facts remain unchanged? The framing effect, a well-known phenomenon in behavioral psychology, plays a crucial role in this. This effect has the power to guide our perceptions and can make the difference between business success and failure. In this article, we dive deeper into the nuances of the framing effect.

What is the framing effect?

The framing effect occurs when our decisions are influenced by how information is presented. Equivalent information may be more or less attractive depending on which features are highlighted (Tversky & Kahneman, 1981).

In this study, Tversky and Kahneman asked participants to choose between two treatments for 600 people who had contracted a fatal disease. Treatment A would result in 400 deaths, while treatment B offered a 33% chance that no one would die and a 66% chance that everyone would die. This was presented with either positive framing (how many people would survive) or negative framing (how many people would die). Treatment A received the most support (72%) when presented as saving 200 lives, but this percentage dropped significantly (to 22%) when presented as losing 400 lives. This showed that the choices we make are also influenced by how they are presented.

How does the framing effect occur?

The most common way the framing effect is deployed is to emphasize the (positive) gain or the (negative) loss. Because we verliezen willen vermijden, we are susceptible to this kind of framing. We would rather hear something positive than something negative. A certain gain is our preference over a possible gain and a possible loss is our preference over a certain loss (Kahneman & Tversky, 1981)

The availability heuristic may also contribute to the framing effect. We prefer information that we can process quickly and easily, and so we prefer information that is presented that way. Our automatic thinking system then demands a lower capacity of thinking power.

As we get older, the framing effect becomes stronger because we cannot process information as easily and have fewer cognitive resources available (Thomas & Millar, 2011).

Practical examples

• On a pack of yogurt you can either write "10% fat," or "90% fat free. Actually, both say the same thing, but which do you think sounds better?
• You're looking for disinfectant hand gel. One brand claims it kills 98% of bacteria (positive characteristic), the other promises that only 2% of bacteria survive (negative characteristic). The result is the same, but how does it sound that bacteria survive?
• How much sugar does a glass of chocolate milk contain? 12 grams per 100 ml or 3 sugar cubes per glass, which sounds more appealing?

How can you apply the framing effect?

As an entrepreneur, you can perfectly use the framing effect as a persuasion technique. Here's how you do it:

• In your communication, emphasize the positives and benefits or a particular aspect you want to focus on. How does your product solve the customer's problem or in what area does a customer gain?
• Study your target audience: what frame does your target audience like? What words, moments, feelings or figureheads?
• 'False alternative framing' can be used to add extra weight to the alternative of a choice: for example, do you want to receive the healthy eating newsletter or do you want to stick your head in the sand and eat your fill?
• Pay extra close attention to your choice of words. For example, do you call something "beautifully decorated" or "richly decorated"? Do you go with 'just a good car' or 'always a safe ride'?
• Hook on a recent event, giving your message a different connotation. For example, "Do you want to stay warm this winter?

You yourself are also influenced by the framing effect. Therefore, for important decisions, dive deeper into the subject first, an only then make a choice.

Resources

Thomas, A. K., & Millar, P. R. (2011). "Reducing the Framing Effect in Older and Younger Adults by Encouraging Analytic Processing."The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 67B(2), 139-149.

Tversky, A., & Kahneman, D. (1981). "The framing of decisions and the psychology of choice." Science, 211(4481), 453-458.