What is framing?
Why does framing matter?
In my opinion, understanding the framing effect and being able to spot when it is being used against you is crucial. Companies rely on these mental shortcuts we use to entice us into buying their brand or product. Although many companies may be trying to provide you with a good or service, they will always be trying to find ways to make more profit. And be using these framing techniques, they can do just that.
Example of framing in the food industry?
But why did I pick that yoghurt?
Give me another example?
Diet and wellbeing course
Pay in monthly instalments of
£109 for 5 months
So you say that’s great! I can start right away and pay in monthly instalments!
But if you actually work out the total of £109 every 5 months, you will realise it equals £545. You will pay £50 more for the exact same course.
That’s a pricey and unfair mistake, don’t you think?
What is the solution?
Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral decision making, 12(3), 183-206.
Tversky, A., & Kahneman, D. (1973). Availability: A heuristic for judging frequency and probability. Cognitive psychology, 5(2), 207-232.
Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. science, 185(4157), 1124-1131.