Framing
Framing describes how a human, with exactly the same information, can end up arriving at two different conclusions.
You might think this impossible, but some examples will make it very obvious!
Examples
Which sounds healthier?
- Meat with 25% fat
- Meat 75% fat-free
Which raffle would you join?
- 5 winners per 1000 people?
- 995 losers per 1000 people?
As you can see, the way something is presented can drastically change how we view it.
Framing in Business
Beyond the strict definition of Framing, you can consider a 'Frame' everything that surrounds the object in question.
In a conversation, the 'object' is what you say, while the 'frame' is what you wear, where you are, etc. In Business, the 'object' is the product you're trying to sell, and the 'frame' is everything else, from the look of the store and, the idea that you're trying to market, etc.
Marketing and advertising take full advantage of these principles, by associating products and brands with ideas and using color theory to influence our emotions.
Psychological Pricing
One way a business can influence somebody else's decision is by changing how they present their price.
Pay for longer
Instead of promoting their new "365$ paid over a year" deal, businesses choose to say "A dollar a day!". This makes it seem cheaper, even if we're completely aware that we're going to end up paying 365$ for the product.
Rounding Prices
The same way discount stores go for 1.99$ instead of 2$, luxury stores can choose to round UP their prices, from 999.99$ to 1000$, which feels more premium and higher quality.
Conclusion
Framing is a very useful tool for businesses because it allows them to present their products and services from a different perspective, giving them an edge against their competition.
From a consumer's perspective, you should learn how it works in order to not fall for psychological tricks!
Thanks for reading!
Remember to Upvote and Share, so that I can keep making many posts per week!
Take a look at my last posts, about Rationality!