Framing Bias Effect #marketing #finance #education #money

The framing effect is when our decisions are influenced by the way information is presented. Equivalent information can be more or less attractive depending on what features are highlighted.

🔸For Example:

John is shopping for hand wash at his local pharmacy. He sees several options, but two options on sale. One is called “Hand Cure” and the other is called “Hand Safe”

Both of the hand wash John is considering are the same price and same quantity.

🔸The only difference John notices, is that the Hand cure claim to “kill 95% of all germs,” whereas the Hand safe say: “only 5% of germs survive.”

After comparing the two, John chooses the Hand cure. He doesn’t like the sound of germs ‘surviving’ on his hand.

➡️John’s decision to buy the Hand cure over Hand safe was informed by the framing effect.

Although both products were equally effective at fighting germs, and essentially claimed the same thing, their claims were framed differently. Hand cure highlighted the percentage of germs it did kill (a positive attribute), whereas Hand safe highlighted how many germs it did not kill (a negative attribute).

Source: The Decision Lab
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#shopping #psychology #food #framingbias #spending #personalfinances #sales #money