The framing effect is a cognitive bias that influences how you perceive and interpret information based on how it is presented. It can affect your decision-making process, especially when you face uncertain or complex situations. In this article, you will learn what the framing effect is, how it works, and some examples of how it can impact different fields or industries.
The framing effect is the tendency to draw different conclusions from the same information depending on how it is framed or worded. For example, you might be more likely to buy a product that is advertised as having a 90% success rate than one that has a 10% failure rate, even though they are mathematically equivalent. The framing effect can also influence how you evaluate risks, benefits, options, and outcomes.
When individuals react differently to something based on whether it is presented as positive or negative, this is known as the framing effect. In other words, rather than what is stated, how the information is presented influences our judgement.
The framing effect is a practice to be mindful of when you’re intentionally attempting to influence the audience’s perception of something in order to drive business metrics.
The framing effect works by activating different associations, emotions, and expectations in your mind. Depending on how the information is framed, you might focus more on the positive or negative aspects, or the potential gains or losses. This can affect your preferences, judgments, and actions. Factors such as your goals, values, beliefs, and motivations can also influence the framing effect.
When a situation is presented as a loss, we tend to take risks. E.g., When we lose $100, it hurts more. So, in gambling, we take more risks to get back what we have lost. The emotion is stronger when we lose $100, than when we gain $100. So, the framing effect is used to influence your decision-making.
The framing effect is a popular tool in marketing to persuade and influence customers. Marketers may emphasize the benefits or features of a product, compare it to a competitor or reference point, or use positive or negative words, images, or sounds. Discounts, bonuses, and incentives can also frame products. For instance, marketers might refer to a product as "the best-selling" or "the most popular" to appeal to social proof, or as "limited edition" or "only available today" to create a sense of urgency.
Cognitive biases are systematic errors in thinking that occur when people rely on mental shortcuts, rather than carefully evaluating information. These biases can impact decision-making, as people may overlook important information or make irrational choices based on faulty reasoning. In corporate communications, the framing effect can be used to manipulate the audience's perception of a product, service, or company. A company might use positive language to frame a product in a way that makes it seem more desirable, even if it doesn't have any real advantages over similar products. Cognitive biases can lead to the use of misleading or false information, as well as the use of emotionally charged language to manipulate the audience.
Which Product would you pick? A: Frozen Yoghurt 20% Fat B: Frozen Yoghurt 80% Fat-Free Most of us would pick 'B' looking at the title "80% Fat-free". In reality, both products are the same in terms of fat percentage. The way information is presented tricks the brain to make a decision quickly. A?framing effect where?the positive or negative frame?of an item's?attribute affects the evaluation of the?item although these presentations are?logically?equivalent!
The framing effect makes one item sound more appealing than the other, even when there is no difference between them As an example, consider the framing effect. +You come across two distinct meat items while shopping. +Both are the same weight and price. +One says "75% lean" while the other says "25% fat." +When you compare the two, you decide that 25% fat seems unhealthy, so you go with the 75% lean choice. In hindsight there is no difference between the items
In healthcare, the framing effect can have a major influence on decisions both professionals and patients make. These decisions can be based on intricate and uncertain information, such as selecting a treatment or procedure, assessing the risks of a medical intervention, joining a clinical trial, or adopting a healthy behavior. For instance, a doctor might present a treatment option as having a 70% survival rate or a 30% mortality rate, which can considerably affect how the patient perceives the outcome and makes their decision.
From a medical devices perspective I always try to learn the language of the listeners, if it top management I then frame it in terms of the market access and percentage reduction in defective product for quality and regulatory projects. In short frame it in that the benefits to them and or their department and most importantly in the language format they understand best
The framing effect can also have an impact on financial decisions, which often involve uncertainty, trade-offs, and emotions. Examples include investing in stocks, bonds or other assets, saving for retirement or a specific goal, buying or selling a property or business, and managing debt, budget, or cash flow. For instance, an investor might frame a stock as having a high potential return or a high risk of loss. This could shape how they evaluate the opportunity and allocate their resources.
The framing effect in the municipal finance sphere appears often in public comments during budget season. The accusations are typically: "You [Gov] are raising my taxes again," or, "You have a spending problem." These statements are framed as though municipal budget decisions are made in a vacuum. The assumption is nothing has changed from 5-, 10-, or even 20- years ago when taxes were "more reasonable." Municipal leaders would do well to present tax and budget information in context, considering changes in property values, population, household income, and the time value of money.
The framing effect in telecom refers to how information presentation influences perception and decision-making. It can be seen in marketing messages, price plans, and network coverage. Providers can use framing to influence customer perception and make their products and services more appealing. The framing effect is a powerful tool in telecom marketing.
The framing effect can be helpful or harmful depending on the context and the goal of your decision-making. To avoid being misled or biased, be aware of your own assumptions, preferences, and emotions. Also, seek out different perspectives and sources of information, reframe the information in different ways, and use objective criteria and data to evaluate the options. And test your decisions with feedback and experimentation. By taking these steps, you can improve your critical thinking and decision-making skills and achieve better outcomes in your field.
To avoid falling into the framing effect trap, the first step is 'Awareness'. Try to look for the frames i.e., how is the information presented. Avoid accepting one-sided frames. Take decisions?by looking at the product holistically, and analysing the positive and negative aspects so you know what you could lose or gain.
To avoid the framing effect look at the information and see how it is presented . Presentation of information is a key factor in framing.
In corporate L&D I see this play out in two flavors. Regarding back end of our work, this flairs between us and our stakeholders. It's extremely common for us to approach problems & solutions with our own biases and our stakeholders do the same. In these situations, we should be cognizant and do what we can to mitigate. As it relates to the audience of our end product, this is something we have to try and address through diversity in our solutions. Too often we go to market with a solution that frames well for us, but we have to consider our audience likely doesn't think or see things the way we do. In fact, there is great diversity even in our audience. As a result, we need to design creative solutions that address the diversity of need.